Rate increase coming on Nov 4 | Hubert Financial | Discussion forum

Rail Baron said
I've benefited from much collective wisdom on this site in recent years, and thought I would join the Forum to make a small contribution back.

I just got off the phone with Hubert, and had been ready to open a 5 year term RRSP account.

The rep who couldn't have been nicer and more helpful, told me that rate increases are coming tomorrow (Nov. 4) and to hold off on opening any new accounts until then.

I guess the BoC's latest hike is now working its way through the GIC world.

p.s. 5 year term will increase to 5.1%, I was told.  

Thanks for the update ! There's probably going to be another interest rate hike on Dec 7, so a better strategy might be to put it in a 1 yr cashable GIC and convert it in 3 months to a 5 yr GIC. Or park it for a month in a HISA and then buy the 5 yr GIC.

Dean said

Rail Baron said

. . .

p.s. 5 year term will increase to 5.1%, I was told.

From 5.0% to 5.1% isn't much to write home about ... but every little bit
helps, eh !

Yet another indication that most GIC rate increases have (for the most
part) Stalled-Out, in spite of the continuing rate increases by the BoC.

Thanks for the Heads Up, Rail Baron.

Dean

  

Disagree. "Higher and longer" sentiment is creeping in. Hubert, Steinbach, Saven, Motive, Tangerine, Maxa and, most encouraging, the big banks via online brokerages, all have moved over 5 for 5. The big banks are really interesting, because the online banks might be pressured into raising rates even higher in a response. Nice work by Mr. Powell yesterday, indicating the fed may now be looking at over 5 as base rate. At any rate (with apologies), thanks for the Hubert heads up, Rail Baron.

lifeonanisland said

Disagree. "Higher and longer" sentiment is creeping in. Hubert, Steinbach, Saven, Motive, Tangerine, Maxa and, most encouraging, the big banks via online brokerages, all have moved over 5 for 5. The big banks are really interesting, because the online banks might be pressured into raising rates even higher in a response. Nice work by Mr. Powell yesterday, indicating the fed may now be looking at over 5 as base rate. At any rate (with apologies), thanks for the Hubert heads up, Rail Baron.  

+1

If I may add that all indication from Mr. Powell. ECB and Bank of England, the rate are going higher for longer.

Chairman Jay Powell “We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected,”

ECB "The Governing Council took today’s decision, and expects to raise interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target"

Bank of England “Inflation is too high, and it’s the bank’s job to bring it down,” Governor Andrew Bailey said at a press conference after the announcement. “If we do not act forcefully now it will be worse later on.”