Hubert dropping 1-year GIC rate to 2.20% from 2.30% | Hubert Financial | Discussion forum

Per Rate Update e-mail:

Effective Saturday, May 9, 2020.

I expect Peoples Trust and Peoples Bank of Canada to follow in turn, eventually bringing their 1-year GIC rates down to 2.0-2.10% or so. Over the month of May, and potentially into June, I expect the 1-5 GIC rates of the current top 10 or so FIs to fall commensurately such that, for the 5 year GIC, 2.25-2.30% will be the top rate by early to possibly as late as mid June.

HISA rates will fall over the next three months, such that 1.5-2.0% will be the top rate available.

Even though the Bank of Canada has committed to maintaining the zerobound policy interest rate over the medium- to potentially long-term, analysts are also predicting that the bond market may force into slightly negative rate territory. I don't think that's as likely, but you never know. What we'll see is the Big 6 banks + HSBC + Manulife + Tangerine cut their HISA base rates to 0.0-0.05%, if they haven't already done so, and cut costs in other ways.

Cheers,
Doug