When will Bank of Canada drop interest rates?
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- เผยแพร่เมื่อ 5 มี.ค. 2024
- It's the status quo on interest rates from the Bank of Canada, as the central bank revealed on Wednesday it's holding its benchmark rate at five per cent - where it's been since last July.
International risks like the attacks in the Red Sea, as well as global conflicts that could impact oil markets, can also impact Canada's inflation.
Anne Gaviola has more on if - and when - Canadians might expect a first rate cut.
For more info, please go to globalnews.ca/news/10338646/b...
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1994 - "No soup for you!!!"
2024 - "No rate cut for you!!!"
They wont lower interest rates
not this week, i hope it goes up , people who were stupid and paid 200k above asking get what they earned, being stupid and driving up prices by being willing to overpay and outbid everyone
✋👍🙏
He didn't mention that over 20% of your GDP is real estate, so there's nothing to worry about then. 🤣
It was the sub- 3% mortgages and failed housing policies that ginned up the housing bubble. The solution is rapid building of new housing stock.
@@meh4770bahahahahahahaha followed by a million more immigrants no doubt. The solution is emigration. Building houses increases demand for labour, land and materials. More houses being built always means higher prices.
The distress for banks was a farce, what we have experienced past 2 years is a result of a system that has worked incredibly well. Fed just had to tighten credit to cool economy.
Yeah even fed lending program for banks that was said eased financial tensions after the domino effect from Signature and Silicon Valley bank. All false. The rich get richer while the middle class clamors and struggles, the poor...well.
Yeah even fed lending program for banks that was said eased financial tensions after the domino effect from Signature and Silicon Valley bank. All false. The rich get richer while the middle class clamors and struggles, the poor...well.
When will they increase the rates? It's still too low!
Agreed, They really should have had rates a little bit higher a lot longer ago. Im not sure that rising rates now would be great for confidence in the central banks though. I think they are just going to dig in their heels and stay at this rate for longer as we know economic times are already good and cutting rates can always help be a cure if the economy isn't heading in a good direction. They don't like it when things move too fast. so they always want to slow the speed of change down.
Exactly...
Lol
I need more renters just increased...average rent by $800 on my investment property smiling all the way to bank 16 apartments woo hoo 😅😅
Keep the interest rates high for another 3 years 😅
@@aubreylacoste9333 not sure if I believe you. you'll know soon enough if your higher rate is too much or not when A) you dont get the new renters you want and B) when people start missing their payments and you need to go through the eviction process that takes months.
Those that are counting/hoping/wishing for a drop, then you borrowed too much. Count on rate drop when we hit a depression
houses and aprartments are not a comodity they are homes for people to live in. food shelter and water are fundimental human rights. what is wrong with people that they are trying to make the right to live unaffordable for people.
Won't hold my breath on this, worrying what central banks will do regarding interest rates is not worth the oz of energy wasted.
Interest rates are not going to drop, get over it
I don’t see any price changes on the groceries since pandemic but they said the inflation is going down
Inflation is not going down, it’s increasing at a lower pace. Prices will NEVER go back to normal. Companies are bragging on shareholder calls that they can just “pass on the costs to the consumer”. This is a new age.
Take a look at bank’s last quarterly financial reports - record profits!!! They just take money from people’s pockets by means this draconian interest rates and give to the banks. It is modern slavery at its finest!
That's because inflation is the rate of change.
@@ron.mexico.Grocery stores are not in the business of losing money. Everything gets passed down to the consumer.
The rates should stay as high for as long as possible.
Short term high is the long term normal. 5% is a completely acceptable interest rate. Near 0% is crazy and caused so many problems. That was an emergency measure left over from the Great Financial Crisis. I don't understand how people think that should be the norm.
Since 2008 government's have been hooked on the cheap money.
Our inflation has a lot to do with transportation from field to fork. Do you know how many hands are involved? Now multiply those hands with a carbon tax and gst on top of that. Get the picture????
That's one of the few pieces to the puzzle, yes.
they shouldn't decrease it at all... look at the economy now... god...
Tell me you know nothing about economics...
Decrease it for what. Spend within your means and stop borrowing money. 5% is not even high.
@@nhuynh555 they should decrease it to serve his selfish interests because the house he is paid too much for is his only retirement asset
@@WizardHarry69 you know nothing about economics?
Never. Increase the interest rate.
Single guy my cost of living in Vancouver $7000 monthly but hey inflation is going down . Sure why not let's just go with whatever the BOC says . People unhappy now wait till they realize there is no cuts coming . End of year should be real happy times .
Will the government reduce spending?
or at least stop spending recklessly like a drunk incompetent teenager.
I'm gonna go with no. They win votes with more spending instead of sound economic principles. A more economically educated public might fix that.
There are many scenarios for interest rate policies but out of all, only 2 major scenarios are the most important ones, the best and worst-case scenarios.
1: Best Case Scenario; the Bank of Canada to KEEP rates at the current 5% level throughout 2024, 2025 and 2026 then evaluate the situation and decide to cut or keep at 5%.
2: Worst Case Scenario; the Bank of Canada to CUT rates and the MASSIVE inflation start to bounce back and the bank has to raise the rate again and at that time BoC has to raise the rate way above the 5% current level. At this critical point, public confidence in the economy and BoC will be lost, which will lead to public confusion, and all sectors of the economy will start to melt down, a painful nightmare for all Canadians.
The government and Bank of Canada know something that the public doesn't know and that would be the rising geopolitical tensions around the world, the major cause of the current inflation crisis and economic downturn.
It is in the BEST interests of the country and the public, the Bank of Canada to KEEP the rates at 5% with NO CHANGE for at least 3 years to ride out the global geopolitical storms and their fallouts, supply chain, energy, and inflation crises.
Warning: Any rate cut will be followed by a MASSIVE rate HIKE to a much HIGHER level than the current 5%.
Damn! You are spot on. I couldn't have said it better myself.
With all due respect, you have no clue what you are talking about. When rates go down they crash. They take the escalator up and the elevator down, ALWAYS.
A lot of our inflation is caused by the devaluation of our dollar. For years, we’ve heard repeated claims that more government spending would pay for itself. Outlays for infrastructure projects were supposed to improve our capital stock, while expanding child care would boost the labour supply. More capital and labour inputs should have increased the supply side of the economy. But instead of government spending paying for itself, we’ve seen a steady erosion of per-capita GDP growth and persistent government deficits. Same thing happened before in Canada.
what does that mean? @@ron.mexico.
When the fed will starts to cut rates BOC will follow. The inflation in 2022 -23 was a global phenomenon rates had nothing much to do about that. The rates will drop back to 2-3% is what 90% of economists predicts.
When the economists and realtors stop telling Canadian that interest rates will go down!
Lower the freakin rates. Your forcing people to walk away from theyre homes. Cant keep up with loan payments because of interest rates. Your idiots. Plus people are not shopping like they use to.
Nobody ever lowers anything once they’ve jacked it up….get a grip already.
When will Bank of Canada drop interest rates?? When Canadians have a new gov that will fix this Liberal/NDP disaster, that's when.
Canada's Worst recession was in the 1980s under a Conservative government. Many things create high inflation not only politics. Remember, high oil prices drove up the cost of everything. Oil prices are up and down every day due to global conditions.
@@maryjeanjones7569 Cons didnt spend Billions and continue to spend Billions that majorly contributed to the inflation, and highest inflation rate compared to the G7. On top of that the Carbon tax that affects transport affects high prices on every consumer purchase, gov increase on fertilizer (contributes to higher food cost), etc. These are contributions of inflation caused by gov policy not global conditions. Which then affects increase interest rates. His father a liberal was in power 1980-1984
@@alexiapucci4482 - Covid 19 was a huge factor contributing to debt. Don't recall any pandemic spending with previous governments during my lifetime. Many citizens and companies still owe Billions in CERB payments.
@@maryjeanjones7569 There is no denying this gov policies played a huge contribution to inflation. Bank of Canada had admitted this in numinous interviews. CERBS is a part of it and major part is the Billions the gov had spent and continue to spend which they do not have. Economics 101.
The only way to bring down interest rates is to get rid of Trudeau and the liberal party
nonsense, nothing will change, no government or party controls the economy, you and I do. Consumers control the economy! Stop buying everything like your gonna die! If we all stop spending prices will fall!
lol he has nothing to do with it...check the facts Pierre Pollievre thought he could fire the bank of canada manager...lol...duh...no..all this started in the 90's and now here we are..lol..but if it makes you feel better blame somebody for it....
Rates should be going up given the data. Maybe you cheap debt addicts should have been smarter to begin with?
@@WizardHarry69 You sound like one of my tenants 😅😅
they should increase 1% more to end this hope for real state
🇨🇦🇨🇦 do not cave BOC!!! Our children will have less chance of affording homes if you drop rates 💪🏻💪🏻💪🏻
I'm favoured, $42,000 every month! I can now give back to the locals in my community and also support God's works and the church. God bless America. Psalm 144_1-2 says... "Blessed be the Lord my rock who trains my hands for battle, and my fingers for war,! Amen. He is more than enough!!! And i keep praying in the spirit with unknown tongues of fire
God bless you more abundantly for your generosity
I'm genuinely curious to know how you earn that much monthly
Thanks to Lucia Celina.
YES!!! That's exactly her name (Lucia Celina) so many people have recommended highly about her and am just starting with her 😊 from Brisbane Australia 🇦🇺
Same here, with my current portfolio made from my investments with my personal financial advisor (Lucia Celina) I totally agree with you
Excuse me, has rent fallen by 50% yet?
No?
Then it's not time yet.
And it never will
Egypt raised their lending rates 600 basis points in one shot just the other day. A country in Africa did the same. I think we may see an unexpected surprise come October
Not sustainable in Canada .with more than half population with mortgages.
He needs to start cutting the BoC director rate. That’s it, that’s all.
Never they love milking you guys 😂
Not many are even economically inclined enough to know the difference between "deflation" and "disinflation" . Many also don't know why price stability is so important or why it isn't wise to cut rates for NO REASON DURING GREAT (DATA DRIVEN) ECONOMIC TIMES. You really want a guess to when rates are coming down(USA because there are many reasons they will be cutting first)? Overlap FEDFUNDS rate chart data on a monthly time frame over the US2Year Yield Chart. Then you can see for yourself what came first, the chicken or the egg.
They’ll drop when they see negative growth.. that includes the outlook for demand on housing prices
When ever the home prices reset that's when they will start dropping it down. Home prices are 50% plus higher and most Canadians won't afford this. It will take great amount of time.
More like when will they declare the current rates as the 'new normal'
Since it’s anyone’s guess I predict 25 points at the end of Q2 and another and the end of Q3. 50 basis points total in 2024.
bank won't cut interest rates until house prices come down soooooo not this year , i know it is an unpopular opinion
11 hikes! Not 10:(
When? when ever the FED is ready and BOC will do.
The increase in carbon tax isn’t going to help bring inflation down and I fully expect a big spending budget in April. It’s definitely not time to bring rates down until we see the budget. As the liberals try to gain some support they are going to be spending money to try and by votes and they don’t seem to have any game plan other than to spend. They could delay an increase in the carbon tax but there’s no way that’s going to happen with Poilievre pushing so hard for them to do that.
Rates will Drop Q4 - Q1 of 2025 as per the projections that were released 2 years ago and have almost been on point.
However we are seeing a realistate boom with higher interest therefore that shows them Canadians are affording your living. If we stopping paying $300 a ticket for a hockey game and $32 a plate out for dinner the market would show this on the consumer side but right now everyone’s complaining they have no money yet they’re still spending? How’s that possible? We are seriously terrible at budgeting and finances most of us have no idea how to looo beyond 1-2weeks. We are so focused on buying wants like potatoes chips and soda pop then crying eggs are to expensive when we could literally make better choices. We are actually the same ones keeping rates higher because our data isn’t lining up with what the people are saying because your still purchasing even if it’s on Debt you are still purchasing. However the projection and plan is to level out between 4.1-4.3% prime rate by 2028 and 4% will be our new norm to help protect the banking system.
The other thing is if we drop rates quickly you will Definatly all be priced out of a home as housing costs will go up nationally around 10-15% as per CRa and CMA. You can find all of this if you’re not lazy and do some research.
Toronto property tax just went up 10%. Housing and car prices are ripping up higher. Interest rates need to go up, but BOC cannot make a move without Daddy USA permission.
Shame shame bank of Canada for your stupid too much high interest rate 😢
More wonderful news...all we need is the carbon tax to go up.
NO SUCH THING INFLATIOM DOWN, GROCERIES ARE ALMOST DOUBLE 🤦🤦🤦
GAS PRICES ARE ALMOST DOUBLE 🤷🤷🤷
HOUSE PRICES ARE ALMOST DOUBLE
IN REALITY, INFLATION IS OVER 6% RIGHT NOW.... ✅️
why. Im mortage free , dont have any debt , making money in investments becuse of these rates
stupidly low interest rates is what caused this current economic problem
our rates are NOT high now , compared to past rates ( 80s 90s )
if rates would stayed where they are now we wouldn't have these ridiculous housing prices
The problem is not that the rates are high, it’s that they increased by 400% in a year. They’ll never go back to where they were before since the same thing would just happen all over again. After a while we’ll all get used to 4-5% and it will be the new normal. But if your mortgage just increased by 300%, you’re never going to get used to that. There will be some sell-offs as people bail from their unaffordable homes. But the people who buy those homes at 5% will be fine. Market correction.
0:10
💪🏻💪🏻💪🏻 DO NOT CUR RATES!!!! Short term pain, long term gain 💪🏻💪🏻💪🏻
Criminals
Polka dance 🔙🆒
As soon as Trudeau our CrimeMinister is gone we can start to recover .. it’ll take years to repair his damage ..
Price that has gone up will not come back down unless people buy a lot less. It has nothing to do with inflation.
False, cheap debt, and money printing means more money chasing the same amount of products that is the root cause.its like cutting a pizza in to more slices and then saying you have more pizza but in actuality you just have more smaller slices. Printing money is only justified by growth in the amount of products and services produced within a nation to keep from deflationary pressures. That is why we usually maintain a 2 percent inflation target to buffer from deflation.
hahahaha bro these shills crack me up every time I see them. Posting 50 comments in just half an hour when the original post only has 90 comments😂😂😂😂 I just hope nobody gets fooled by them...
a marathon where 40% of Canadians can't afford to eat and thanks to interest rates can't afford their mortgage
Then you loose your home and the investor sharks move in scoop up your home hold it for a grace period and sell when it’s profitable to the investor yea circle of owning things like they say another mans garbage is another man’s treasure or another man’s unpaid mortgage is another man’s luck
Layoffs everywhere ain't happening any times soon
It is in tech.
When spending is under control
maureendellaswanson