BoC rate cut possible on Wednesday
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- เผยแพร่เมื่อ 15 ก.ย. 2024
- Brooke Thackray, research analyst of Global X, joins BNN Bloomberg and talks about the Bank of Canada possibly doing a rate cut on Wednesday.
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Rate cuts commence in June 2024, taking 6-8 months to complete. A potential crash, if any, might occur by March 2025. The soft landing narrative is gaining traction, making this big recession everyone is calling for less likely. With $1 million from a business sale, I'm seeking profitable investment opportunities for the next 3 years.
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The distress for banks was a farce; what we have experienced in the past 2 years is a result of a system that has worked incredibly well. The Fed just had to tighten credit to cool the economy.
What about the Fed lending program for banks that was said to ease financial tensions after the domino effect from Signature and Silicon Valley bank?
@@WhitneyRoss-dj4rf Yeah, that sufficed, but what really helped the economy was rising immigration that helped even out the mismatch between open jobs and people looking for work.
I agree. Rising productivity is manna for central banks, allowing faster growth without inflation because each hour of work yields more goods and services at the same cost.
I’m indifferent. All I really do care about is what assets and securities will drive the Santa Rally? It is upon us, folks. I have a $100k portfolio, and I have a friend who has grown theirs to over 30% with the recent rallies. He is up 4% this month alone!
I might sell to the tune, but not without the approval of my broker as usual since 2022. With eyes and ears on Wall Street, I have raked in 140% on a managed portfolio currently worth $315k run under a hedge fund by Desiree Ruth Hoffman.
Yep not cutting. Markets would love nothing more than to start borrowing again. Which the boc does NOT want
Don't be so sure. Trudeau said "housing needs to retain its value". Banks always come first, not people.
@@galeru he also said it’s not sustainable going up as quick as it did. Banks are fine they are collecting and raising ammortizations to 30 plus years anyway. The fools are the ones who bought and extended their mortgage knowingly only paid thier interest with no principal down
@@peej91 Read between the lines. They control the narrative that's being pushed in the media. You have to ask why they are talking about "consecutive rate cuts in july" when the rate cut hasn't even happen yet. Of course banks are fine. They are greedy. They will cut cos the banks don't want collaterals being underwater. In any case, the first cut is mostly for psychological effects.
The central bank of Canada isn't going to cut rates people.
History suggests otherwise, but hey, youtube comments section, anything goes.
@@davidhughes6048 What history are you referring to?
@@JessT-vg7ib You know, the history where raising rates damages the economy enough that a backward looking BOC will have to drop rates because they went too far in one direction. They will drop rates. It may happen slowly, but rates will come down. Should be good for some divvy stocks tho! Govern yourself accordingly.
Very strong argument you have there. I believe you.
Home prices haven't dropped at all and worldwide mass-immigration hasn't slowed down. As cruel as the rapid rise in rates was, 5% should hold firm for years.
Rates should be going up, people are too comfortable with free money. Canada's economy is being diluted for pollitical gain.
Interest rate go down home prices gone by $40 to $50 thousands, young Canadians born in Canada never ever going to be home owners.
We do not deserve any cuts
Back in 1983, relatives of mine took out a 11 3/4% interest rate. They just bought a house they could afford, imagine that?
They will probably hold again. Think they need to see more data.
Interest rate is normal, what is not normal is house prices. That is what needs to cut/drop.
The boy king saýs no!
💯 Absolutely right.
Rate cuts are the final nail in the coffin for liberals.
They won't cut. Why no one was made accountable for the low interest rates and the money printed out and gave to so many undeserving people? Fed chairman told interest rates will be low for unforeseeable future during the cuts. No heads rolled !! No accountability!!
@@dontbefooledbyjumla7869 Are you talking about the USA or Canada? In the US Trump started the stimulus in 2020 giving out 2 trillion dollars and Biden did another 3 trillion or whatever so both did the same thing but Biden went too far but thats the US
@@dontbefooledbyjumla7869 I paid my rents and my landlord got mortgage payment deferrals. I paid my rents and my landlord got 100 years of amortization. I got a zero dollar increase and my landlord's house doubled in price.
@@drscopeifyI paid my rents and my landlord got mortgage payment deferrals. I paid my rents and my landlord got 100 years of amortization. I got a zero dollar increase and my landlord's house doubled in price.
They should be raising rates, 10% plus
Home prices has to come down 40 to 50% interest rate can stay 5% does not matter.
Nope the Bank of America stated they are holding interest rates Canada will follow
Better be nice and respect your parents cause you gunna be there a long time. Whatever happens these house prices need to drop. Leave the rates as is for 2024.
.25 cut is nothing at this point. The economy will be strengthened and the overleveraged people will be strengthened.
If interest rates are cut, housing prices and inflation will skyrocket. No cuts!
Canada is in trouble no matter what they do. Buckle up, y'all.
7 Cuts soon since 2022 lol
Possible but not probable. Bet against.
Interest rates are the only reason for continued inflation.
Mortgage cost is one of the reason why it not going down.
We won't see any until 2025 still to early
Inflation was flat only for couple of months and last year boc called it out that bringing cpi down 2 was going to take some time. No surprises here
No cut in my view. Bank of Canada lags, and if inflation was 2.7% why cut. Even thought when they do it will be too late
We can't afford to return to an economy based on junking out on cheap debt.
We already brought forward, the coming decade of wealth, by way of cheap debt.
That money is already borrowed and spent.
I don't know how you ask your credit card company for a cheaper rate when the balance on your card just keeps increasing ?
Does anyone know how much the interest rate cut will be ?
No one knows, but I suspect it won't be much. Maybe 10bps for the first time.
Ha ! They'd be drunk if they cut right now. Our dollar can't afford it.
base effect is the only reason it didnt go down the last year
Cutting this soon will look terrible when it looks wrong, especially when the Fed has decided not to cut. Brooke has great points.
Don't cut rates this year...hold rates through June 2025.
I agree.
Hold the line and bankrupt 50 percent of the country . Geeezus
stop being hysterical...half the country isnt going to go bankrupt
@@JessT-vg7ib for sure I’m being hyperbolic but most people aren’t going to be able to to support their mortgage payment tripling. That and the fact that it feels like food has gone up at least 30% in the last 4 years .
@@jtome84-91 Feeling like food prices going up 30% doesn't mean it's a fact. If you look up at Statistics Canada grocery stores, as a whole, only have an average profit margin of 3%-5%. Increase of prices are because of numerous external factors that are beyond the grocery stores control.
Food price has doubled for the commoner and fied income seniors. Rich don't care.
and I suppose will expect that 50 percent bankruptcy isn't going to affect you or your loved ones? keep on dreaming.
Up up and away in my beautiful inflation balloon!
The commentor said, 'Why not wait one more month?'
Robot has no feeling for others.
Poor people can't wait. Mortgage renewal can't wait. Recession can't wait.
Well 55% of the country is coming up yes however 40% of the country already signed short term during covid accord to CMA. If you can’t afford your home at 5.5% you should consider selling and downsizing. Rates will not drop as low as you wish I guarantee it. Infact we are holding rates because CMA,BoC and CRA all predict housing prices will go up roughly 10% when rates drops. Housing will boom again, based on our stats with the BoC there’s ALOT of people who didn’t make bad financial decisions who are actually holding out for the rate drops and will swoop in and make some real money.
People shouldn’t have panic purchased and tried to flip a quick dollar ending up carrying more debt it just didn’t make sense. Sold your 300K home for 500K bought a house for 800K now carrying MORE debt. If you thought rates were going to say at 2-3% you didn’t look ahead. We dropped rates to prevent a depression as housing accounts for most of the economy. Here’s the kicked if you sell your house that’s BETTER for the economy. We the country and a person/family will benefit from peoples bad decisions. Yes the Gov will make money off your land transfer taxes and more which helps keep the economy moving. So truly we don’t care if you have to sell your home and downsize, the country as a hole makes more money that way.
I’m not trying to be rude or unsensitive just hate seeing people fail but most did it to themsevles the effects should be felt more by elderly people on a fixed income however most seniors have already paid off their homes. As for everyone else you do have the ability to make more money you just have to want it and work for it. Which is another Canadians issue we want things given to us.
@@Cpt-C4nuK
Agree with u CPT Canuck.
The govt makes no revenue with the standstill continuing on.
If rates drop there will be a short lived flurry of activity followed by price increases which will shut down the market again.
The US economy is the black swan here. We can only cut a small amount without them going down in sequence or its hyperinflation for years to come and further hikes in 2025.
Knowing the snake that our PM is, he will wait for the flurry of activity to be closer to election time. Timing an early election call to coincide with it is also possible.
The over leveraged can wait. The stress test is there for a reason. And there's nothing worse for poor people than low interest rates and a crap dollar. Poor people have little to no assets. The value of the dollar is more important.
They actually don't cut rates out of pity.
Its also possible that I will win the lottery but its highly unlikely. Also when they do cut it will be slow and steady. Rates by the end of 2025 might be around 3.5%
Lower rates (0.25%) will not save what is coming
Mabe 4.5% but no lower. Home price corrections will make that a healthy rate from now on.
A hold
I have an analogy regarding the last two years.
Inflation and interest rates are like a seasonings. While war, money laundering, and the poverty level are the principal ingredients served and enjoyed by all people around the world
🤔🤫🤝💰💰🚀🚀💥💥🚑🏥🤤🤤🍦🍰👨🏼💻🙏🏻
Cut and make housing more expensive
And every imported item in this disaster of a worlds pantry economy.
these people are evil. lie lie lie some more
How about fixing the supply/demand issue so high interest rates aren’t necessary.
2025 is when will see our 1st rate cut
Might actually see an increase.
There are always more data points coming 😂
Rates will HOLD. Inflation is down however productivity is down which means costs are up. Therefore likely hold rates one last time.
However you shouldn’t be banking so much on rate changes over 40% of the country already remortgages during Covid for short terms which shows it’s possible to do. Stop spending $500 to see a hockey game and going out for dinner every week. We are terrible at balancing debt in Canada, we blame gov and banks however it’s your job to balance your debt or you can be a pos and leave it for your kids to balance your debt and theirs one day….Hence they’re coming up again however if you couldn’t afford your home at 5-5.5% you should consider selling and downsizing as rates will likely never drop below 3.8-4% again. We have already stated this if Inflation is at 2.7-2.8, 3% going forward BoC stated there will be a 1%+ catch percentage to help protect the banks. People shouldn’t have panic purchased and tried to turn a dollar just to end up carrying more debt I don’t understand how that was a smart financial decision. However those who held out in purchases now have the opportunity to make some profit off of those who made poor financial decisions and also due to your bad financial decisions I’d also like to add you are also the reason housing is where it is because you were willing to pay 300-400K more then you could afford 3 years ago. Housing would have come down at that point if you didn’t over pay as it would level out. However due to panic purchasing bad financial decisions by Canadians it has created a mess we also created. Just food for thought when you’re sitting there all disgruntled blaming everyone but yourself.
BoC cutting does not impact Fixed rate!!
A drop of 1 point on Wednesday