Quote:
Originally Posted by Enoch Root
Not necessarily - a rate hike can often be a one-and-done.
What matters (and I suspect you were getting at) is the expectation that there will be more rate hikes. That expectation is what steepens the yield curve, pushing longer term rates up. And that in turn pushes up mortgage rates.
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Right, exactly. I probably should have used the phrase "makes the market expect" vs "seem more likely" as I agree 1 hike doesn't necessarily change the probability of more (except as an indicator of the BoC willingness to move at least once). But I do think the first hike makes future hikes more likely to get priced in, steepening the curve.
But really, what do I know. If I could predict interest rates I'd be bidding on that giant yacht they seized from the oligarch...