BoC Interest Rate Decision on Tuesday

[broken_legs]

Thats right. All you variable rate mortgage people bette rpay attention.

This could hae a ig affect on our currency and the markets here in general, not to mention real estate. (even though it is only a PUNY 0.25%)

I say carny is going to raise. Good on 'em.

Canada’s hot economy tops forecasts
Tavia Grant
08:42 EST Monday, May 31, 2010

The Canadian economy expanded by a stronger-than-expected 6.1 per cent in the first quarter, the biggest increase in a decade, boosted by a hot housing market and consumer spending.

The country’s gross domestic product grew at the fastest annualized pace since 1999. It has expanded for seven months in a row and climbed 0.6 per cent in March, Statistics Canada said Monday.

The release, landing one day ahead of the Bank of Canada’s interest rate decision, fuelled expectations of a rate hike and sent the Canadian dollar higher. It’s the latest in a series of reports showing everything from employment and retail sales to trade and manufacturing is gathering steam.

[911fever]

it'll get raised, likely

[skandalouz_08]

Everyone's expecting it to be raised. Bet it will still have a huge effect on the dollar and possibly markets tomorrow.

[cdnsir]

I'm gonna guess... plus 0.50% tomorrow.

[kaput]

.

[benyl]

Originally posted by cdnsir
I'm gonna guess... plus 0.50% tomorrow.

That is my guess as well. It will probably be too much, but we all know how people overreact with everything... haha

[benyl]

Originally posted by kaput
Hopefully it's a huge jump. I need Euros and USD badly, I didn't get a chance to buy when we were at parity a month or two ago.

Depending on your timeline, the euro is bound to drop more soon:

http://www.nytimes.com/2010/05/31/bu...agewanted=1&hp

They have to start printing more money...

[Cos]

I am betting on 0.5%, recovery hasnt been perfect but if you compare rate to economic indicators we are behind to be only increasing my 0.25%

[Tik-Tok]

Raise 0.25%, followed by another one in the not too distant future. They aren't going to scare people with an immediate 0.5%

[Cos]

Originally posted by Tik-Tok
Raise 0.25%, followed by another one in the not too distant future. They aren't going to scare people with an immediate 0.5%

damn you could be right. June 0.25, end of summer 0.25

[Xtrema]

Originally posted by Tik-Tok
Raise 0.25%, followed by another one in the not too distant future. They aren't going to scare people with an immediate 0.5%

I would expect that as well. 0.25% to hold off and see how this EU debt thing shakes out next few months.

Even China is cautioning a double dip. It will probably til end of the year to see if the 2nd dip materialize.

[djayz]

I'll have to side with the .25 raise although I still think they should hold off until the EU stuff clears before even raising it at all.

[Jim Rome99]

Of course it will only be a .25% raise. Anyone who thinks otherwise is a fool. They'll raise it another .25% before Labour Day though.

[2000impreza]

I'm betting on 25 basis points (0.25%) as well. Any more will send the dollar back to parity.

[Altezza]

I concur 25 points, followed by 25 again.

[2002civic]

well .25 it is

[Cos]

FYI

Bank of Canada raises benchmark rate
Marks 1st hike since Carney installed as governor 2 years ago
Last Updated: Tuesday, June 1, 2010 | 12:09 PM ET Comments132Recommend107.
CBC News
The Bank of Canada did the expected and raised its benchmark interest rate to 0.5 per cent on Tuesday, the first hike in nearly three years.

The bank moved its overnight lending rate 25 basis points higher, up from 0.25 per cent.

In doing so, Canada became the first G8 nation to raise rates after an aggressive round of cuts at the start of the recession in 2008, and after most developed economies showed signs of rebounding in 2009.

"The bank has decided to raise the target for the overnight rate to one-half per cent and to re-establish the normal functioning of the overnight market," the bank said in a statement.

Bank of Canada governor Mark Carney made a "conditional commitment" to keep rates low as long as the economic circumstances warrant it. (Sean Kilpatrick/Canadian Press)
The rate has been frozen at 0.25 per cent since April 2009, when the bank made a "conditional commitment" to keep rates at such an extraordinary low as long as economic circumstances continued to warrant the shot in the arm of easy lending.

After recent reports showed Canada's economy expanded at a 6.1 per cent annual pace in the first quarter, and created a record 109,000 jobs in April alone, the bank decided the time was right to act.

"He's taking his foot off the gas, he's not slamming on the brakes," RBC chief economist Patricia Croft said.

It's the first time Mark Carney has opted to raise interest rates since he became the governor of the Bank of Canada more than two years ago.

'He's taking his foot off the gas, he's not slamming on the brakes'
—Economist Patricia CroftThere were concerns that the deteriorating economies of Europe and elsewhere might compel the bank to stand pat, but the bank clearly paid more attention to undeniable signs of local strength.

"The domestic case for higher rates simply overwhelms concerns about the international backdrop," BMO chief economist Doug Porter said.

Further hikes possible
The bank's next scheduled meeting to discuss rates is July 20. Given how long the rate has been so low, many economist expect several small rate hikes in a row to follow. But in its policy statement Tuesday, the bank hinted that's not necessarily the case.

"In most advanced economies, the recovery remains heavily dependent on monetary and fiscal stimulus," the bank said in its statement.

"Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments," it added.

Indeed, the bank left the door open to hold at 0.5 per cent, or even retract if the global situation deteriorates, Croft said.

"It's not a given that another hike is coming on July 20, as the bank made it clear that raising rates is going to be very slow and very cautious," she said.


Read more: http://www.cbc.ca/money/story/2010/0...#ixzz0pcT9hGH0

[sputnik]

If the naysayers are right were should see 100,000 homes in Calgary being foreclosed in 3 months.

[Cos]

Originally posted by sputnik
If the naysayers are right were should see 100,000 homes in Calgary being foreclosed in 3 months.

I know I cant afford my mortgage now.

[masoncgy]

The sky is falling! OMGWTFBBQ!