Quote:
Originally Posted by Table 5
Anyone know how long it typically takes for banks to adjust their GIC rates after the interest rate increase? I'm looking to lock in a GIC, but wondering if today's rate hike would already have an effect, or if there's a delay.
|
As bizaro86 mentioned, GIC rates tend to be correlated with bond yields, which are actually dropping right now. So if anything, waiting might be counterproductive. CIBC for instance dropped their GIC rates yesterday, and other places seem to be starting to drop the rates on their longer term ones (2+ years).
It's a combination of the market predicting rate cuts in the next year or two and the fact that money is flowing more towards guaranteed investments (bonds, GICs, etc.) in the face of a possible recession, and that will tend to reduce their yield.