Quote:
Originally Posted by bizaro86
I mean, I get you have concerns with Yoho/Twitter, but that's a distinction without a difference.
When the BoC raises short rates, the banks immediately raise prime which automatically raises variable mortgage rates.
Saying the BoC isn't raising mortgage rates is very much akin to Nelson hitting Milhouse with his own hand and saying "stop hitting yourself". The BoC owns the raise in mortgage rates even if someone who probably shouldn't be a financial pundit got the headline technically incorrect.
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I disagree. That is not a good analogy. Nelson's intent is for Milhouse to be hit and he has no other considerations. Raising the overnight target rate has the side effect of raising variable rate mortgages, but that's not why they are doing it or even factoring into the decision much. Also, the majority of mortgages are fixed anyway. The Bank of Canada isn't sitting around a table debating on whether they should raise people's mortgages.