Bank of Canada increasing Interest rates

[Buster]

While I never take a really strong position on interest rates, I am in the camp that thinks neither the US nor Canada can ramp rates as fast as some expect.

[roopi]

Banks have already announced .25 rate increases for borrowing. No mention on the savings/gic rate increases. Not surprising at all.

[HiTempguy1]

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While I never take a really strong position on interest rates, I am in the camp that thinks neither the US nor Canada can ramp rates as fast as some expect.

I don't get why people want it to ramp fast anyways. Time and again, it's been shown that it is shocks to the financial system that cause chaos, not necessarily bad monetary conditions. As long as inflation is kept in check, they can ramp it up nice and slow. Why they would do it any other way makes no sense to me, but hey, what do I know?

[Marsh]

I have a variable mortgage currently, and with the .25 increase my monthly payment will go up a grand total of.....$14. Better stop going to Starbucks now

Edit: Rate increases based largely on economic data that showed growth rates...this was primarily driven by Alberta's "growth" and jobs numbers. Those numbers are pretty weak to begin with (most jobs were part time jobs) and albertas growth is coming out of the bottom of the barrel. BoC is supposed to be independent but obvs getting pressure from feds to do something to cool housing in Toronto and Van a bit...

I really don't think rates are going to skyrocket up. Economies everywhere are still showing relatively modest gains, and thats on record low rates. Jacking up rates won't do anything but stifle all the progress over the last 8-9 years...

[Buster]

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I don't get why people want it to ramp fast anyways. Time and again, it's been shown that it is shocks to the financial system that cause chaos, not necessarily bad monetary conditions. As long as inflation is kept in check, they can ramp it up nice and slow. Why they would do it any other way makes no sense to me, but hey, what do I know?

I'm almost entirely convinced that the market should be setting rates anyway. Like other gov't interventions, the market is better at sorting this stuff out.

[Sugarphreak]

...

[max_boost]

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Finally... I hope rates get hiked at least to 2.5% or even 3%

This 0.50% bull shit is just encouraging crazy consumerism

lol why?

you want to see the world burn?

[roopi]

He figures he can afford more then a shoebox in Vancouver then.

[hampstor]

Something new that we didn't have to deal with last time there was a rate hike... impact to provincial debt. Global's math is an extra $57.5MM (I assume per year since they didn't say the term).

http://globalnews.ca/news/3593541/in...ight-now-ceci/

[Tik-Tok]

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He figures he can afford more then a shoebox in Vancouver then.

I'm not sure the foreign property owners care what mortgage rates are, lol.

[ZenOps]

As long as they print 0.5% more money than normal - its all good.

[blownz]

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I wonder how much the "high interest" savings accounts will move...

Got RBC and CIBC to change accounts to Prime less 1.75 for savings. 1.2% - not bad and will get better as the rates move up next 1-2 years.

[Xtrema]

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I'm not sure the foreign property owners care what mortgage rates are, lol.

Still 9% increase year to year after all the cooling measure in Vancouver. Not going to get cheaper any time soon.

All the rate hike just means even better for landlords out there.