Making sense of the Bank of Canada interest rate decision on March 12, 2025 + MORE Mar 13th
Mortgage rule changes are expanding insured market activity, insurers say Mar 4th
RBC warns of rising mortgage losses through 2025 with upcoming renewals + MORE Sep 4th
How to protect your identity + MORE Sep 7th
Mortgage Expert alert: Why Canadian housing seems unaffordable in 2026: A 35-year real estate disconnect + MORE Jun 5th
Making sense of the markets this week: July 14, 2024
– moneysense.ca
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Are U.S. rate cuts on the way?
While Canada’s inflation rate is obviously at the forefront around decision making for the Bank of Canada (BoC) in setting the key interest rate, inflation below the border is also a major consideration. Arguably, policymakers are loath to devalue the Canadian dollar beyond a certain level. Consequently, if U.S. inflation stays high—and U.S. interest rates correspondingly stay high—it will likely impact just how quickly the BoC can cut our interest rates.
“The Canadian and American economies are very closely intertwined, especially when it comes to the cost of borrowing. Historically the BoC and the Fed have mirrored each other in terms of monetary policy (the act of cutting, holding, or hiking their benchmark interest rates).”
—Penelope Graham, mortgage expert
Markets were mostly flat on Thursday after the U…
