May 27, 2015 - Bank of Canada maintains overnight rate target at 3/4 per cent
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May 27, 2015 - Bank of Canada maintains overnight rate target at 3/4 per cent

This is a discussion on May 27, 2015 - Bank of Canada maintains overnight rate target at 3/4 per cent within the Dominion Lending Centres - Clear Trust Mortgages forums, part of the Corporate Sponsors category; Bank of Canada maintains overnight rate target at 3/4 per cent Link: Bank of Canada > Press > Press Releases ...

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    Forum Beginner herefishyfishy's Avatar
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    DefaultMay 27, 2015 - Bank of Canada maintains overnight rate target at 3/4 per cent

    Bank of Canada maintains overnight rate target at 3/4 per cent

    Link:
    Bank of Canada > Press > Press Releases > Bank of Canada maintains overnight rate target at 3/4 per cent

    Here are the most recent changes to the Bank of Canada prime rate (aka the overnight rate):
    - June to September 2010: 3 x 0.25% increases, prime rate changed from from 0.25% to 1.0% (0.75% total increase)
    - January 21, 2015: lowered from 1.0% to 0.75% (0.25% decrease)


    The next scheduled date that the Bank of Canada will announce their overnight rate target is Wednesday July 15, 2015.
    Find out how a licensed mortgage broker can be an advantage for securing a better mortgage:
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    An interesting study from the Bank of Canada on mortgage discounting.

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    Forum Beginner herefishyfishy's Avatar
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    Here are some excerpts from the recent Bank of Canada key interest rate announcement on May 27, 2015:

    Total CPI inflation is near the bottom of the Bank's 1 to 3 per cent inflation control range
    the Bank estimates that the underlying trend of inflation is 1.6 to 1.8 per cent, consistent with persistent slack in the economy.
    While a weak first quarter in the United States has raised questions about that economy’s underlying strength, the Bank expects a return to solid growth in the second quarter. This will help advance the rotation of demand in Canada toward more exports and business investment.
    Recent indicators suggest consumption in Canada is holding up relatively well, given the impact of lower oil prices on gross domestic income.
    Risks to financial stability remain elevated, but appear to be evolving as expected.
    Find out how a licensed mortgage broker can be an advantage for securing a better mortgage:
    http://www.andrewleung.ca - Licensed Mortgage Broker, Mortgage Pro"fish"onal!

    An interesting study from the Bank of Canada on mortgage discounting.

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    Forum Beginner herefishyfishy's Avatar
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    Here is what our Chief Economist, Dr. Sherry Cooper had to say (direct link):
    STAND PAT BANK OF CANADA

    As was widely expected, the Bank of Canada left overnight rates unchanged at 0.75 percent and reiterated earlier comments about the likely trajectory of the Canadian economy. The Bank is more optimistic about the economy than private sector forecasters, believing that a rebounding U.S. and global economy will spur Canadian business investment and exports in coming months.

    The problem is that business investment growth has declined sharply in the wake of the oil price rout and ensuing collapse in business investment in the oil patch–a situation that is not likely to improve anytime soon.



    In addition, a marked further improvement in Canadian net exports likely awaits a further decline in the Canadian dollar, which has strengthened a bit recently with the uptick in oil prices. Although the Bank of Canada would never admit it publicly, they would welcome some slippage in the loonie to help boost trade.

    The Bank continues to aver that “the underlying trend of inflation is 1.6 to 1.8 per cent, consistent with persistent slack in the economy”. They will certainly continue with the current level of monetary accommodation until the economy moves closer to fully employment and inflation moves back to the midpoint of the 1-to-3 percent target band, which is not likely until next year.

    The Federal Reserve, on the other hand, will like raise rates in September. Nevertheless , the Bank will remain on the sidelines as the Fed rate move will no doubt be anticipated and put downward pressure on the Canadian dollar.

    Ironically, the Bank has no direct control over longer-term interest rates, which have risen significantly in the past month or so. Five-year government bond yields, which are closely linked to domestic mortgage rates, are determined by global market forces. These yields have risen in the U.S., Canada and elsewhere from a considerably overbought position, steepening the yield curve. Thus, the Bank will get no help from credit-sensitive spending to meet its forecast for stronger growth for the rest of this year.

    Dr. Sherry Cooper
    Chief Economist, Dominion Lending Centres
    Find out how a licensed mortgage broker can be an advantage for securing a better mortgage:
    http://www.andrewleung.ca - Licensed Mortgage Broker, Mortgage Pro"fish"onal!

    An interesting study from the Bank of Canada on mortgage discounting.

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    Sponsor charles's Avatar
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    Thanks Andrew... Appreciate all your advise...

    We specialize in rare and exotic fish from around the world.
    Come see us at www.canadianaquatics.com

 

 


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