Quote:
Originally Posted by albertGQ
What does this mean in terms of interest rates? Nothing?
I'm hoping the BOC doesn't increase interest rates again
I'm on variable and just getting screwed over big time.
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I would anticipate another rise or two this year (two more opportunities for them to change the rate, unless there was an emergency session, which is not likely!)
Quote:
Originally Posted by opendoor
They'll definitely keep raising rates. Even if inflation gets under control in Canada, we need to more or less keep pace with the US's rate increases unless we want a $0.60 Canadian dollar again. Hopefully the US slows its pace soon (assuming inflation there shows signs of softening).
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There's been nothing dovish from the Bank of Canada or Federal Reserve at this point. Everything they say has suggested that they will make sure that inflation gets to the target range (which is 2-3%). That suggests continued rate increases.
That said, they could pause the increases if inflation appears to be subsiding. They could also raise by 0.25% instead of a projected 0.50% and that would be a strong signal to the market overall.
"Guessing at the future rate of interest is, in my opinion, one of the most puzzling problems in the world." - John Maynard Keynes