‘Dramatic shift’ in rate-hike expectations
Filed Under Main Content · Tagged: Bank Of Canada, Belief That, Commodity Prices, Contract Credit, Dramatic Shift, Economic Recovery, European Continent, Friday Morning, Greece, Guessing Game, Loonie, Losses, Market Chaos, Percentage Gain, Rate Hike, Spillover, Statistics Canada, Steep Fall, Value Of The Canadian Dollar, Worries
The Gazette- The Greek crisis, together with market chaos, forced a "dramatic shift" in expectations of a Bank of Canada rate hike next month, a view reflected in a steep fall of the loonie Thursday on the belief that such increases might no longer be in the offing as panic spreads about Europe.
However, the guessing game on rates took another turn Friday morning after Statistics Canada reported a massive 108,700 job gain in April, the biggest percentage gain since 2002. The data blew past expectations and boosted the value of the Canadian dollar. Still, analysts indicate the jobs data is backward-looking, and does not take into account future developments on the European continent.
Worries that the spillover in Greece may contract credit growth in Europe and threaten the global economic recovery rattled investors on Thursday, with equity markets in North America sustaining deep losses and commodity prices falling…
‘Dramatic shift’ in rate-hike expectations
When will the Bank of Canada raise interest rates and by how much? – FP Trading Desk
Filed Under Main Content · Tagged: Bank Canada, Bank Of America, Bank Of Canada, Basis Point, Basis Points, Benchmark Interest Rate, Conclusion, Desk, Economist, Exact Timing, Expiry Date, Extent, Futures Markets, Initial Rate, Interest Rates, Jolt, Mark Carney, Merrill Lynch, Rate Hike, Shot Across The Bow
Financial Post-With most agreeing that a rate hike from the Bank of Canada is imminent, the talk now turns to the exact timing and extent of the central bank’s policy changes.
Governor Mark Carney made a “conditional” promise to keep the benchmark interest rate at 0.25% through the end of June 2010. However, one way to keep to this expiry date and provide markets with a jolt would be an initial rate hike of 50 basis points on July 20, according to Bank of America Merrill Lynch economist Sheryl King.
“Futures markets are only partially pricing in that possibility so it would be a shot across the bow to be sure,” she said in a note. “The strongest argument against this tack in our view is that the market would immediately rush to the conclusion that all future hikes will be similar in size.”
The economist thinks a 25 basis point hike on June 1 is the most likely scenario…
When will the Bank of Canada raise interest rates and by how much? – FP Trading Desk
When housing boom meets rate-hike panic
Filed Under Main Content · Tagged: Atlantic Canada, Bank Of Canada, British Columbia, Estate Business, Executive Vice, Harmonized Sales Tax, Housing Boom, Hst, Interest Rates, July 1, Ontario Canada, Post Spring, Rate Hike, Real Estate, Sales Tax, Surprise, Term Interest, Vice President
Financial Post-Spring is typically a busy time for the real estate business, but this year may make others pale in comparison.
With new mortgage rules in effect April 19 that will make it tougher to borrow in some cases, the new harmonized sales tax (HST) in Ontario and British Columbia beginning on July 1, and the Bank of Canada likely to hike short-term interest rates, it’s no surprise buyers are becoming panicked.
"It’s extremely busy out there right now. There is clearly a shortage of properties for sale in many parts of the country," said Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada…
