WOW - Emergency Bank of Canada Announcement - another 0.50% DROP

[TimLacroix]

WOW - Emergency Bank of Canada Announcement - another 0.50% DROP

The Bank of Canada on Friday delivered an emergency rate cut, slashing its main rate by half a percentage point to 0.75%. The move follows a half-point cut at the bank's regular policy meeting on March 4.

The BIG question now is what will the lenders do? Will they pass on the full discount and lower Prime from 3.45% to 2.95%?

HEADS UP - lenders are already starting to adjust the discounts. We have seen a couple of lenders go from -1.00% to -0.80% the last couple of days. If you are interested in variable... give us a call or email.

Tim
403-479-0066
[email protected]

[roopi]

This is very surprising since they just cut the rate. I have a feeling banks aren't going to pass this on completely. It would be too good if my variable rate mortgage drops by 1% over 2 weeks.

[TimLacroix]

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This is very surprising since they just cut the rate. I have a feeling banks aren't going to pass this on completely. It would be to good if my my variable rate mortgage drops by 1% over 2 weeks.

Agreed... I have my doubts but this is unchartered territories!

[A790]

This is such a stupid move, holy fuck.

[JRSC00LUDE]

We are seriously going to be fucked if the world doesn't stop panicking.

[benyl]

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We are seriously going to be fucked if the world doesn't stop panicking.

We are fucked any way. There are going to be so many corporate bankruptcies.

[ExtraSlow]

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We are fucked any way. There are going to be so many corporate bankruptcies.

A few dozen US oil company bankruptcies could be a net positive for all North American oil oil and gas companies. Oh shit, I'm repeating myself from the $30 oil thread.

[OTown]

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WOW - Emergency Bank of Canada Announcement - another 0.50% DROP

The Bank of Canada on Friday delivered an emergency rate cut, slashing its main rate by half a percentage point to 0.75%. The move follows a half-point cut at the bank's regular policy meeting on March 4.

The BIG question now is what will the lenders do? Will they pass on the full discount and lower Prime from 3.45% to 2.95%?

HEADS UP - lenders are already starting to adjust the discounts. We have seen a couple of lenders go from -1.00% to -0.80% the last couple of days. If you are interested in variable... give us a call or email.

Tim
403-479-0066
[email protected]

My lender told me that fixed rates have started going back up due to the volatility in Bond markets. Do you think next week will be lower?

[TimLacroix]

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My lender told me that fixed rates have started going back up due to the volatility in Bond markets. Do you think next week will be lower?

Which lender are you with?? PM me as rates did increase Friday with a few lenders.

What we have seen so far is the following:
- Scotia increase to fixed rates by 0.25%
- Scotia decrease in variable rate discounts from -0.70% to -0.10%
- Equitable Bank decrease in variable rate discounts from -1.00% to -0.25%

And a few other went from -1.00 to -0.80%.
And a couple other non-banks increase fixed by 0.10%

I would image we will see more announcements on Monday. If you are interested in securing some rates for the next 120-days... please PM me and I am working over the weekend to assist my fellow Beyond members. Or email [email protected].
-

[Misterman]

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This is such a stupid move, holy fuck.

Why? This is literally the reason they have been raising rates for the past year and half without the supporting metrics in place to do so. To buy themselves room to lower rates again when the inevitable recession hit.

[TimLacroix]

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Why? This is literally the reason they have been raising rates for the past year and half without the supporting metrics in place to do so. To buy themselves room to lower rates again when the inevitable recession hit.

We are also trying assess and understand the changes but it is most likely a reaction to the uncertainty and volatility of the markets... and lenders are protecting themselves. As more details come about, we will share.

[ZenOps]

Its times like this that I'm glad they made it legal.

[cam_wmh]

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This is such a stupid move, holy fuck.

Need to hear your reasoning on this.

[revelations]

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This is such a stupid move, holy fuck.

Same move as many other parts of the world have done already. The FIAT/financial system, as we know it, will be phased out within our lifetime. A proper global currency will arrive (not bitcoin).

[ExtraSlow]

[benyl]

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This is such a stupid move, holy fuck.

I guess they should raise rates? Have people who are getting laid off lose their houses because they eat through they savings faster?

[ZenOps]

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Same move as many other parts of the world have done already. The FIAT/financial system, as we know it, will be phased out within our lifetime. A proper global currency will arrive (not bitcoin).

Before Corona, I would have said this would be unlikely. But now there is definitely a chance that I will live to see the world stop using Dollars Yuan and Yen.

I just wonder how they will or if they even bother to try and convert US dollars to whatever people decide they want to use. I mean, if Buzz Aldrin got paid $4,000 on the year he "went" to the moon - what exactly is value? I know that a hacksaw blade costs between 1.5 and 3 cents to manufacture (Iron ore being $95 per ton) but it also seems that Millennials want to pay $13 for a slice of avocado toast.

[A790]

Rates were already low at 1.25%. Lowering them this early into the pandemic to 0.75% removes a ton of ammunition from their war chest. It's a stupid move because they did two back to back rate drops with no appreciable time in between. We have no way of knowing if these rate cuts are even effective or accomplishing their intended purpose.

Rates never recovered from 2008, and now we're likely to repeat the same cycle. So we saddle tons of debt on top of problems tied to... debt. COVID is temporary. The debt problems will follow us for decades.

[Misterman]

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Rates were already low at 1.25%. Lowering them this early into the pandemic to 0.75% removes a ton of ammunition from their war chest. It's a stupid move because they did two back to back rate drops with no appreciable time in between. We have no way of knowing if these rate cuts are even effective or accomplishing their intended purpose.

Rates never recovered from 2008, and now we're likely to repeat the same cycle. So we saddle tons of debt on top of problems tied to... debt. COVID is temporary. The debt problems will follow us for decades.

It might seem low in a general sense of the word, but rates were high compared to where they were before they started raising them without reason or merit.

COVID might be temporary, but this oil war that the interest rates are a response to is probably going to be a big problem. That's the unfortunate circumstance we are stuck in now, since governments and environmentalist groups have been kneecapping and strangling the economy so hard for the past 10 years. Near zero or negative interest rates is one of the few levers left to pull and something we should get used to, if they aren't going to allow the natural function of business to pull us out of the mess. FFS despite the low interest rates, the government has still managed to royally fuck the entire national housing market with their knee jerk policy changes in response to a couple localized bubbles. All because the spineless losers don't have the balls to just ban foreign buying.

[dirtsniffer]

Us fed rate now at 0%

https://www.cnn.com/2020/03/15/econo...rve/index.html