What 'higher and faster' Bank of Canada rate hikes could mean for homeowners — via financialpost Economy Mortgages RealEstate ratehikes
The Bank of Canada’s move to hike its policy rate by 50 basis points Wednesday will be quickly noticed by variable-rate mortgage holders and Canadians holding a home equity line of credit, but if inflation persists and rates have to rise more quickly — something the central bank’s chief acknowledged was a possibility — the effects are not likely to stop there.
“Higher and faster rate hikes will affect mortgage affordability for a significant population of homebuyers,” RatesDotCA mortgage agent Sung Lee told the Financial Post in an e-mail. “Major banks have already pushed fixed rates higher several times over the past few weeks with some approaching the four per cent mark for uninsured products.”to react to the shifting interest rate environment, lifting their prime rates by 50 basis points to 3.
“If demand responds quickly to higher rates and inflationary pressures moderate, it may be appropriate to pause our tightening once we get closer to the neutral rate and take stock,” Macklem told reporters during a Wednesday press conference. “On the other hand, we may need to take rates modestly above neutral for a period to bring demand and supply back into balance and inflation back to target.”
The Bank of Canada estimates that a neutral rate stands between two per cent and three per cent. Macklem suggested the benchmark rate could rise above that range, potentially taking the overnight rate to 3.25 per cent.Article content
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada Hikes Rates by 50 Bps, USDCAD Continues to March HigherThe Bank of Canada elected to raise its key policy rate by 50 basis points -- the largest hike in over two decades. The bank also revealed that quantitative tightening would begin April 25th, as it looks to tackle inflation now at three-decade high.
Read more »
Bank of Canada hikes interest rate by 0.5% for first time in 22 yearsBank of Canada hikes interest rate by 0.5% for first time in 22 years — via financialpost Canada Economy interestrates inflation
Read more »
Kevin Carmichael: Brace for more big hikes because the Bank of Canada is far from finishedICYMI: Brace for more big hikes because Bank of Canada is far from finished — via financialpost Canada Economy inflation
Read more »
Consensus on CBDC design among central banks not a priority, Bank of Canada saysThe Bank of Canada recently confirmed a 12-month research project exploring the use cases of central bank digital currencies with MIT.
Read more »
New Tarrant Area Food Bank location opens in WeatherfordThe Tarrant Area Food Bank hopes that the new location will help meet the growing need for people across North Texas.
Read more »
South Korean central bank raises rates to 1.50%Reuters reported that South Korea's central bank raised its policy rate to the highest since August 2019 on Thursday in an unexpected move as it seeks
Read more »