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Email this6:24 pm
December 7, 2011
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smayer97 said
...I would not be surprised with a 50 pts drop at the next announcement next Wed.
My prediction, that on Oct 23 BoC will reduce rate to 3.75% and another reduction to 3.25% will be on Dec 11.
BoC rate will drop 1% before end of the year.
6:48 pm
September 14, 2022
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Winnie said
My prediction, that on Oct 23 BoC will reduce rate to 3.75% and another reduction to 3.25% will be on Dec 11.
BoC rate will drop 1% before end of the year.
I think the chance of that is about zilch. Like it or not Canada plays follow the leader and where the US Fed funds rate is currently they'd never diverge that much....especially with the U.S. already tampering expectations of accelerated rate cuts. While I know most Canadian banks are expecting a 50 basis point cut coming up even that I think is too 'optimistic'....unless they plan on not cutting in December.
7:26 pm
September 29, 2017
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Then you do not follow the markets that closely. Canada does NOT follow the US, though it may appear so at some periods in time. No, each market follows the beat of their of drum; sometimes it is in sync, but sometimes not. You can clearly see that from 2010 to 2015, as an example.
Even lately, BoC changes have not been playing "follow-the-leader".
7:27 pm
September 29, 2017
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Winnie said
My prediction, that on Oct 23 BoC will reduce rate to 3.75% and another reduction to 3.25% will be on Dec 11.
BoC rate will drop 1% before end of the year.
It sure is looking that way at the moment.
8:02 pm
September 14, 2022
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smayer97 said
Then you do not follow the markets that closely. Canada does NOT follow the US, though it may appear so at some periods in time. No, each market follows the beat of their of drum; sometimes it is in sync, but sometimes not. You can clearly see that from 2010 to 2015, as an example.Even lately, BoC changes have not been playing "follow-the-leader".
Maybe 'follow-the-leader' was off base and looking into it you're right. While I don't think they'd diverge to that degree for very long it does appear possible for shorter periods. I'd welcome an aggressive cutting cycle as I'm all dividend stocks all the time and it would continue to drive them much higher, but I won't get my hopes up. I still think 1% cut over the next two meetings is dreaming but what do I know.
6:56 am
April 21, 2022
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It will be interesting to see if a combined 1% cut has an effect on the CAD?
9:08 am
November 3, 2022
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JohnnyCash said
It will be interesting to see if a combined 1% cut has an effect on the CAD?
If I was a snowbird, I would be buying my USD for the winter months now.
9:56 am
January 12, 2019
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Rail Baron said
If I was a snowbird, I would be buying my USD for the winter months now.
As of 2day ➡ https://ca.finance.yahoo.com/quote/CADUSD%3DX/
- Dean
" Live Long, Healthy ... And Prosper! "
12:34 pm
November 18, 2017
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Mordko: Moving my RRSP to an RRIF lets me lock in a rate at a time when rates are falling. I had a better rate (5%) in the RRSP, but only until year-end; sacrificing two months at that rate for a longer-term rate guarantee worked out better for me.
The continuing US Fed and BoC rate decline prompted this decision.
RetirEd
1:43 pm
April 27, 2017
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RetirEd said
Mordko: Moving my RRSP to an RRIF lets me lock in a rate at a time when rates are falling. I had a better rate (5%) in the RRSP, but only until year-end; sacrificing two months at that rate for a longer-term rate guarantee worked out better for me.The continuing US Fed and BoC rate decline prompted this decision.
Was that a GIC and you were able to cash it by switching from RRSP to RRIF?
2:30 pm
October 27, 2013
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What I don't understand is why not just transfer existing RRSP holdings to RRIF at the same FI. That is the way I think anyone I know does it.
2:53 pm
November 3, 2022
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AltaRed said
What I don't understand is why not just transfer existing RRSP holdings to RRIF at the same FI. That is the way I think anyone I know does it.
If the existing RRSP GICs come due soon, and the chance to lock in longer terms at (relatively) higher rates opens up with an RRSP to RRIF transfer, then there is a narrow window to do this in the coming weeks.
Some institutions will hold GIC rates for 30-45 days when a registered funds transfer is pending. If that rate guarantee can be locked in now, then the RRSP GIC matures within a month or so, and then the funds get transferred into the RRIF with locked in higher GIC rate (higher than what it will be after tomorrow's BoC rate cut works its way through the banking system), this gambit would pay off.
3:23 pm
October 27, 2013
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Okay. I guess RetirEd is dealing with some kind of digital bank/CU does not do straight transfers of assets. in any event, I've/we've gone way off topic for the main purpose of this thread.
7:38 am
November 8, 2018
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The Bank of Canada delivered an oversized interest rate cut of half a percentage point on Wednesday, picking up the pace of easing borrowing costs.
The central bank’s policy rate now stands at 3.75 per cent.
Sadly, but not totally unexpected.
8:11 am
February 14, 2023
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DYN6004
3:48 pm
September 29, 2017
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Alexandre said
The Bank of Canada delivered an oversized interest rate cut of half a percentage point on Wednesday, picking up the pace of easing borrowing costs.
The central bank’s policy rate now stands at 3.75 per cent.
Sadly, but not totally unexpected.
Actually, not at all unexpected... this was foreseeable, as early as Oct 15, but leaning towards that weeks before.
1:07 am
November 18, 2017
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Mordko: Was that a GIC and you were able to cash it by switching from RRSP to RRIF?
AltaRed: What I don't understand is why not just transfer existing RRSP holdings to RRIF at the same FI. That is the way I think anyone I know does it.
[and]
Okay. I guess RetirEd is dealing with some kind of digital bank/CU does not do straight transfers of assets. in any event, I've/we've gone way off topic for the main purpose of this thread.
No, I don't expect everyone to remember everything I said here previously, so:
My little RRSP was at an institution that does not offer RRIFs. It was too small (under $3K) for most other financial institutions to allow me to create a RRIF with it.
(I don't use any "digital banks". I'm the no-online-banking guy.)
It was a 1-year GIC term ending near the end of December. While I could have had 2 months more at 5%, by having it transferred to the new institution, I was then able to then move it to the new institution's GIC RRIF before today's rate drop and keep a slightly lower rate for a full year. The former holding institution does not have RRPS transfer fees. 
That's why I put this note in this topic.
RetirEd
7:50 am
October 27, 2013
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Thank you... I now recall you saying that about a small amount and your FI not having RRIFs.
11:39 am
January 28, 2015
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Winnie said
My prediction, that on Oct 23 BoC will reduce rate to 3.75% and another reduction to 3.25% will be on Dec 11.
BoC rate will drop 1% before end of the year.
I think .25 in Dec or maybe a hold .To go to 1% ,I don't think that will ever happen unless we go into a bad recession. Cheap money is what caused the mess in the first place the bank rate was too low for too long .I would think it will stop around 2.5%
3:50 am
September 29, 2017
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Sorry to break it to you but the market has already positioned itself to allow for another 25 pts drop. And since the next decision is not for nearly 7 weeks, there is plenty of time for yet another 25 pts move at the current rate, with no slowing down, at least not yet.
Please write your comments in the forum.