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Email this9:47 pm
October 29, 2017
Offline10:04 am
January 12, 2019
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.
Unfortunately, we're not likely to see much of an increase in the GIC rates,
if any at all.
The worth of our money continues to go 'Backwards'. 
- Dean
" Live Long, Healthy ... And Prosper! "
11:39 am
March 15, 2019
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Dean said
.
Unfortunately, we're not likely to see much of an increase in the GIC rates,
if any at all.Dean
According to one institution, which is probably representative of the industry, the loan demand just isn't there. No loan demands mean no need for raising deposits.
12:12 pm
December 12, 2021
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rate are going up
The big 5 rate are going up almost daily 2 years gic 4.9% and 5 years 4.85%
12:17 pm
January 12, 2019
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.
FWIW . . .
The next BoC Interest Rate Announcement happens next week,
on Wednesday the 26th.
I'm guessing it'll be another +0.75% increase.
What say yous ❓ 
- Dean
" Live Long, Healthy ... And Prosper! "
5:05 pm
April 20, 2019
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I agree with you. The thing I don’t understand. Does it not take many quarters maybe like 2-4 to see the effects of these rate raises on consumer demand? My guess by mid 2023 economy/Canadian house prices and consumer demand will be in bad shape. Maybe I’ll be able to negotiate with these darn Reno contractors again come the next recession. ♂️
6:03 pm
March 30, 2017
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suburbs4life said
I agree with you. The thing I don’t understand. Does it not take many quarters maybe like 2-4 to see the effects of these rate raises on consumer demand? My guess by mid 2023 economy/Canadian house prices and consumer demand will be in bad shape. Maybe I’ll be able to negotiate with these darn Reno contractors again come the next recession. ♂️
It’s not at the level deemed ‘high enuf’ yet for central banks. But once they get it to that ‘magic’ level, then they will wait and see.
The mind set right now is ‘rather overshoot to trigger recession than undershoot and get inflation out of control’
3:51 am
January 9, 2011
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savemoresaveoften said
It’s not at the level deemed ‘high enuf’ yet for central banks. But once they get it to that ‘magic’ level, then they will wait and see.
The mind set right now is ‘rather overshoot to trigger recession than undershoot and get inflation out of control’
Yes and the BoC is so good and responsive at judging changes and results. 
Look how fast they noticed and reacted to inflation....
"Keep your stick on the ice. Remember, I'm pulling for you. We're all in this together." - Red Green
4:23 am
March 30, 2017
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dougjp said
Yes and the BoC is so good and responsive at judging changes and results.
Its ok, no one has the crystal ball, not even the CB. They just pretend to have one that resembles more like one than ours. Its an educated guess, but the beauty is they always keep their jobs no matter what.
There wont be any economic cycle whatsoever if CBs get it right. But then it will be a boring world. CBs having it always wrong makes it more interesting 🙂
4:41 am
February 7, 2019
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dougjp said
Yes and the BoC is so good and responsive at judging changes and results.
Not great by any stretch but, we're still in a better place than the US, UK or EU ...
| CGO |
9:36 am
January 12, 2019
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And let's not forget that Canada isn't an economic planet, floating all by itself out in the Ether ... as some others here appear to think. LOL 
Much of the inflation we're having to deal with comes from beyond our boarders, and out of the reach of the BoC ... i.e. we live in a 'Global' economy.
The BoC can only do so much. The rest is up to other central banks, etc. ...
My Two Nickels,
- Dean
" Live Long, Healthy ... And Prosper! "
9:44 am
February 7, 2019
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Dean said
.
And let's not forget that Canada isn't an economic planet, floating all by itself out in the Ether ... as some others here appear to think. LOLMuch of the inflation we're having to deal with comes from beyond our boarders, and out of the reach of the BoC ... i.e. we live in a 'Global' economy.
The BoC can only do so much. The rest is up to other central banks, etc. ...
My Two Nickels,
Dean
Soon, Two Nickels deflated to One Nickel ... :):):)
| CGO |
11:27 am
April 27, 2017
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BoC screwed up and was way too late finishing QE and pushing the rates up. It did not need the crystal ball. It needed to get its head out… and act on inflation which was already rampant rather than keep repeating a series of evolving reasons why inflation would disappear all by itself.
BoC did not screw up all by itself. It was both monetary and fiscal policy, so the government bears some of the blame. And yes, supply issues and easing outside Canada played a role too. Which was another reason for an organization with inflation remit to act rather than spin stories.
As a results of BoC being late to the party, the rates will have to go higher and the recession will have to be more painful than it would have been. But it has been working hard to restore its credibility so there is that.
11:39 am
February 7, 2019
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mordko said
BoC screwed up and was way too late finishing QE and pushing the rates up. It did not need the crystal ball. It needed to get its head out… and act on inflation which was already rampant rather than keep repeating a series of evolving reasons why inflation would disappear all by itself.BoC did not screw up all by itself. It was both monetary and fiscal policy, so the government bears some of the blame. And yes, supply issues and easing outside Canada played a role too. Which was another reason for an organization with inflation remit to act rather than spin stories.
As a results of BoC being late to the party, the rates will have to go higher and the recession will have to be more painful than it would have been. But it has been working hard to restore its credibility so there is that.
BoC Leadership are unlikely to accept responsibility for year over year inflation of 8.2/9.8/9.1% in USA/UK/EU ...
| CGO |
1:32 pm
October 29, 2017
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I hate to break the truth to everyone, but the biggest source of fault and the only one, from Canada, that would have made the biggest impact, is the Canadian Consumers. They were told to decrease debts countless times dating back more than a decade. Had that been done, the situation would be massively better. I was the first to say raise rates back in the Summer 2021, but all that would have done is pull the outcome closer. And that outcome is recession, bankruptcy, higher unemployment, etc. it’s really too bad that the government has continually prevented or softened economic crises again and again. They should have just let the pain flow from the first event. Now we are going to see real pain in our near future because the BoC has no choice but to raise interest rates and fast. Perhaps one could blame those in power for not being strict enough about money borrowing, but at the end of the day it’s individuals that have to manage their own affairs responsibly and it’s the Canadian Citizens that have made this appear so nasty.
4:02 pm
September 11, 2013
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I agree, Vatox, that it's the citizens, and would add that governments don't inflict real pain not out of choice but because we the citizens will throw them out and vote for other parties who promise us no pain is required. So govt's in democracies are hamstrung, due to the people's will.
I'm old enough to remember a time when gov't austerity was sometimes seen as necessary, the mere mention of it today gets you tossed out.
6:44 pm
April 27, 2017
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Canadian consumers acted rationally and did exactly what they were supposed to. They were given free money to spend. If borrowing is free then why wouldn’t people borrow? And spend they did, while also putting money into savings. In fact, during the pandemic, per person Canadian households put into savings the most money in the whole wide world ($280 billion). Largely because they were given more free money than in most countries. Naturally all the cash burning peoples pockets leads to inflation sooner or later.
The argument that in democracies governments spend budgets irresponsibility because they are pandering to electorate does have some basis, although this isn’t always the case. We get what we voted for. But that does not translate to “the government and bank of Canada have nothing to do with inflation”.
8:56 pm
October 29, 2017
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Umm… let me see here, why not borrow if it’s free? Because you will owe that money back later and that’s not cool. And more importantly it’s only free while rates are low. You don’t get that rate grandfathered in forever. The only reason anyone should borrow, is because it’s absolutely something you need, like a reasonable mortgage amount for your income or a loan for an economical and reliable car.
9:03 pm
October 29, 2017
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And that savings amount, as I showed long ago, is amongst the high incomes. The per person thing is propaganda garbage. It’s all in the hands of the rich, even the so-called middle class isn’t in good solid savings.
10:52 pm
October 21, 2013
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I have lived over 75 years and was born in Canada. I have NEVER been offered a free loan. The idea that borrowing is or has been free is so much BS.
The only things I have EVER borrowed for are a modest mortgage and post-secondary education.
My first professional job required a car; I rented a used one until I could afford to buy a used one outright, about 8 months in those days.
Car loans are a money pit. Most of the people I worked alongside in those early years always bought new cars and always had hefty car loans that they complained about incessantly. They thought my approach was at best curious, but my used rental cars cost about a third of their monthly car payments and my used car purchase would have only financed about four months of their car payments. I drove that car for several years until I could afford to buy a new used car outright, and so on until I finally bought a brand new car of my choosing for cash.
You can blame consumers if you want, but , to quote George W Bush, the advice from the top is "go shopping". The peculiar organization of our economy requires it as a kind of patriotic duty.
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