*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[greyshep]

Originally Posted by CorsiHockeyLeague

Welp, that 2.99% ten year fixed rate I locked in last spring is sure looking like a solid decision.

Wow, nice call. Assuming you have no plans to move as I imagine that could be a difficult mortgage to get out of?

[timun]

I'm kicking myself for not locking in for longer than five years @ 2.19%. Gotta re-up in 2025.

[CorsiHockeyLeague]

Nope, no plans to move. Who knows what happens down the line of course, but I figured the extra protection of 10 years rather than 5 was worth the extra .5% on the rate and glad to see that decision paying off so quickly... I don't expect rates will ever get back below 3 in the next 9 years.

[FlamesAddiction]

Originally Posted by Fuzz

But inflation also increases housing costs. Not an easy balance to get right.

And rent, as most property owners who have a mortgage and tenants just pass that cost on.

[bizaro86]

Originally Posted by greyshep

Wow, nice call. Assuming you have no plans to move as I imagine that could be a difficult mortgage to get out of?

The reason few mortgages are offered for longer terms is the prepayment penalty is mandated by law to go to 3 months interest after 5 years.

And right now the interest rate differential on that mortgage would be hugely in his favor, so the penalty should only be 3 months interest even before 5 years have elapsed.

You're right though, if rates go down and you need to break a 10 year mortgage the penalty could be eye watering.

[Nyah]

Originally Posted by timun

I'm kicking myself for not locking in for longer than five years @ 2.19%. Gotta re-up in 2025.

I locked in for 5... back in 2019. Mine is coming up in April

[timun]

Originally Posted by Nyah

I locked in for 5... back in 2019. Mine is coming up in April

[Sylvanfan]

I had two from 2018 coming due this year....didn't touch either during the Covid time as they were both variable..Took a 5 year 4.19 fixed on the one last month 3 months early. Hoping that the 5 year 4.38 offer on the other might be there when the guy calls me back this month.

Here I thought making my payments and not refinancing to the hilt every couple months was responsible....so stupid....life ruined now.

[Hockeyguy15]

1.49 til May 2026. Fingers crossed.

[kevman]

I just want my 0.2% back for the bank vs. BOC spread.

4.75% BOC rate should equal 6.75% bank rate like the good old days.

[Yoho]

https://twitter.com/user/status/1667285440032915457

[chemgear]

Originally Posted by Slava

BoC hikes 25bps. I’m a little surprised, as I thought they’d hold but warn that they might rise more. I suppose they don’t want to hold off for too long though.

They never should have paused. Get it done and over with. Not drag it out.

[Bill Bumface]

Remember that whole Modern Monetary thing that says when this happens after you've been printing money like crazy, to raise taxes?

It's a seriously easy and effective lever to take money out of the economy. Such a shame they're too afraid to touch it.

Raise taxes, promise to throw it in the Heritage Fund or something (ha!). Done.

[CliffFletcher]

Which is why MMT is so dumb.

We’ve developed a highly sophisticated model for economic policy that is guaranteed to be effective… in a world that doesn’t have politics or elections.

[Fuzz]

So it's not MMT that is dumb, it's the people. If we weren't cursed with humanity, this would be perfect.

[bizaro86]

Originally Posted by Bill Bumface

Remember that whole Modern Monetary thing that says when this happens after you've been printing money like crazy, to raise taxes?

It's a seriously easy and effective lever to take money out of the economy. Such a shame they're too afraid to touch it.

Raise taxes, promise to throw it in the Heritage Fund or something (ha!). Done.

I don't think raising taxes to the point of a surplus would be necessary - if they raised them to cover existing spending that would probably be enough to put the breaks on inflation. If you wanted to go crazy you could pay off some of the debt incurred during the pandemic, but I doubt that would be necessary to cool things off.

The bank of Canada has their foot on the brakes- if the government let off the gas a bit things would start to slow down.

[GGG]

Originally Posted by CliffFletcher

Which is why MMT is so dumb.

We’ve developed a highly sophisticated model for economic policy that is guaranteed to be effective… in a world that doesn’t have politics or elections.

Not really MMTs fault. If interest rate hikes were governed by governments and not central banks we’d have the exact same scenario playiut with not having political will to raise them.

[chemgear]

https://financialpost.com/news/bank-...st-rates-again

Posthaste: Why the Bank of Canada will likely raise interest rates again — and maybe again

“It is highly unlikely that the Bank of Canada chose to interrupt the pause in interest rates that started in January for just the one additional 25 basis point interest rate hike announced earlier this week,” wrote RBC assistant chief economist Nathan Janzen after the jobs data.

“One softer employment report doesn’t make a new trend, and labour markets are still exceptionally tight from a historical perspective.”

[greyshep]

Originally Posted by chemgear

https://financialpost.com/news/bank-...st-rates-again

Posthaste: Why the Bank of Canada will likely raise interest rates again — and maybe again

“It is highly unlikely that the Bank of Canada chose to interrupt the pause in interest rates that started in January for just the one additional 25 basis point interest rate hike announced earlier this week,” wrote RBC assistant chief economist Nathan Janzen after the jobs data.

“One softer employment report doesn’t make a new trend, and labour markets are still exceptionally tight from a historical perspective.”

Come hell or high water, they'll get that recession they seem to be wanting

[Yoho]

https://twitter.com/user/status/1668438409025581058