Canadian dollar rises on rate hike expectation

Poloz is hinting that rate hikes are coming and thats pushing the Canadian dollar up a bit:

The Canadian dollar climbed to a four-month high of 76.44 cents US after Poloz’s comments, which fed speculation about a rate increase as early as its next scheduled announcement in two weeks. The boost lifted the loonie from an average price of 75.83 cents US on Tuesday.

If the central bank increases its key rate, the big Canadian banks are expected to raise their prime rates, driving up the cost of variable rate mortgages, other loans and lines of credit tied to the benchmark rate.

Poloz credited the two rate cuts introduced by the bank in 2015 for helping the economy counteract the effects of the oil-price slump, which began in late 2014. The reductions also helped increase the speed of the adjustment, Poloz added.

“It does look as though those cuts have done their job,” said Poloz, who was in Portugal on Wednesday to participate in a forum hosted by the European Central Bank.

“But we’re just approaching a new interest rate decision so I don’t want to prejudge. But certainly we need to be at least considering that whole situation now that the capacity, excess capacity, is being used up steadily.”

Read the full article over at the Financial Post.

Sort by:   newest | oldest | most voted
southseacompany
Member
southseacompany

“Central Bankers Worldwide Signaling Higher Interest Rates on the Horizon”, The Street

https://www.thestreet.com/story/14202147/1/central-bankers-around-the-globe-are-signaling-that-higher-interest-rates-are-on-the-horizon.html

“Central bankers around the world are signaling that the time is coming for the cost of borrowing money to rise again, according to an analysis by Bloomberg on Wednesday. “

Oracle
Guest
Oracle

Burnaby road worker run over by a White SUV. All comment closed on all news sites. Why?

Shut It Down Already
Guest
Shut It Down Already

They don’t want to pay overtime to their moderators over the long weekend on account of internet morons?

bullwhip29
Guest
bullwhip29

make that road worker(s)…

like that rmd driver who had umpteen driving infractions and was never named publicly, this driver will be dealt with behind closed doors, released and then back behind the wheel in no time…

Abdul Lahazi
Guest
Abdul Lahazi

I watched the video. Flagger was obviously exercising her “authority” over the SUV driver and then took a dive when the driver got fed up tried to merge into the line. It was obvious the flagger moved into the way of the SUV and then took a dive onto the ground. Now she can claim compensation and not have to work for 6 months.

YVR
Guest
YVR

The flagger deliberately tries to jump in front of a vehicle to make the vehicle stop. Are people really that dumb? She could have just let the vehicle merge in.

Kim
Guest
Kim

https://www.zolo.ca/vancouver-real-estate/6290-ash-street

Sign has been up to redevelop this duplex into seven townhouses since January. Approved as well. Now, developer looking to sell. Wonder why.

Hyper-mega-Bull
Member
Hyper-mega-Bull

Once a Model City, Hong Kong Is in Trouble

When the British left 20 years ago, Hong Kong was seen as a rare blend of East and West that China might seek to emulate. Now, increasingly, it’s a cautionary tale

https://www.nytimes.com/2017/06/29/world/asia/hong-kong-china-handover.html

Just me
Guest
Just me

Hong Kong has become a resort for mainland millionaires who get along well with the powers in Beijing.

Time to go
Guest
Time to go

This is a good line:

“…warned that if Hong Kong remained politically paralyzed, it could slip from the ranks of the world’s great cities and end up like Monaco, a tax haven for the wealthy with few industries beyond financial services and retail.”

Vancouver – Here’s your future if you continue down the path you’re on.

Hyper-mega-Bull
Member
Hyper-mega-Bull

sounds like vancouver, except that getting along well with the powers in beijing isn’t a requirement.

Time to go
Guest
Time to go

Yet… It starts with taking over Strata boards 🙂

bullwhip29
Guest
bullwhip29

Supreme Court dismisses two Site C lawsuits from B.C. First Nations
http://globalnews.ca/news/3565065/supreme-court-dismisses-two-site-c-lawsuits-from-b-c-first-nations/

bullwhip29
Guest
bullwhip29

Foreign buyers still investing in Metro Vancouver real estate despite B.C. tax
http://www.theprovince.com/news/local+news/foreign+buyers+still+investing+metro+vancouver+real+estate/13576859/story.html

>>> my initial take on this is that FBT revenues look a little light (by factor of maybe 3X) given the sales figures quoted in the article, so either much of the foreign buying occurred before Aug 2 or tax simply isn’t being collected.

Just me
Guest
Just me

Look at what is happening to yields, especially the all-important 5-year dates.

http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/

This is starting to look like a seismic shift. House prices? look down below.

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29

but this should be put into proper context, however…

http://www.macleans.ca/economy/business/the-real-canadian-bank-bailout/

“…during the financial crisis, when it was suddenly plausible that homes to fall significantly in value and lenders might take large hits on their uninsured mortgages, CMHC allowed Canadian banks to transfer the risk on over $90 billion of previously uninsured mortgages from their balance sheets on to Canadian taxpayers…”

Combat roach
Guest
Combat roach

No main ingredients available for the fancy ethnic meals any longer, at least not in Vancouver but still in NW and Richmond.

http://bc.ctvnews.ca/vancouver-bans-sale-of-cats-dogs-rabbits-at-pet-stores-1.3481239

Combat roach
Guest
Combat roach

Typo, meant to say “but neither in NW and Richmond.”

Abdul Lahazi
Guest
Abdul Lahazi

SPCA has an unlimited supply.

Owen
Member
Owen

That’s funny, I thought the BoC was supposed to target inflation. Sounds like a good time to buy USD, although with their current government who knows what’s going to happen.

Anyway, was this posted before? http://www.rew.ca/news/vancouver-housing-market-ain-t-seen-nothing-yet-1.20508243

Someone at work mentioned he read that we’re expecting 250,000 higher population in 5 years, which is ~40% above the official projection. The real estate marketer quoted doesn’t provide any reference and his company has been fined for misleading the media in the recent past (they had employees pose as foreign buyers to promote fear of Chinese demand). OTOH, is it true?

Abdul Lahazi
Guest
Abdul Lahazi

“The real estate marketer quoted…” well there’s your answer right there.

Owen
Member
Owen

Quoted at a UDI event no less; foreign buying isn’t an issue but we should prepare for 70k mystery population growth?

Abdul Lahazi
Guest
Abdul Lahazi

BUSINESS REPORT: Higher interest rates ahead
http://globalnews.ca/news/3565466/business-report-higher-interest-rates-ahead/

This issue is getting lots of traction in the media now. Maybe people will begin to wake up to the new reality.

bullwhip29
Guest
bullwhip29

The company at the centre of an undercover CBC News investigation, which unearthed evidence of a cash-for-jobs immigration scheme, is now being reviewed by federal and provincial officials.
http://www.cbc.ca/news/canada/saskatchewan/vstar-immigration-cash-for-jobs-1.4182843

Combat roach
Guest
Combat roach

How would Clark fare in another election?

B.C. Premier Christy Clark’s approval rating has slumped significantly since last month’s election, according to a new poll released hours before her government is expected to fall.
http://bc.ctvnews.ca/how-would-clark-fare-in-another-election-poll-shows-approval-drooping-1.3482935

bullwhip29
Guest
bullwhip29
Just me
Guest
Just me

Answer: yes.

specuskeptic
Member

Only two dots to connect here folks “‘We used to be savers’: Why Canadians ignore warnings about debt”

http://www.cbc.ca/news/business/ignoring-debt-warnings-1.4179540

Some words from Captain Obvious:
“It’s not just that Canadians are comfortable with debt, according to licensed insolvency trustee Doug Hoyes. In recent years, he said, the ability to borrow at low interest rates to buy homes that see outsized annual price gains has actually rewarded the most indebted homeowners among us.

“The banks will lend me the money, and interest rates are low so I can service it, and even if my monthly payments are kind of high, and even if I have to then get into other debt to furnish the house and pay for other expenses, it doesn’t matter because house prices go up 20 per cent every year,” said Hoyes.”

paulb
Member

New
167
Price Change
60
Sold
170
TI:9281

http://www.clivestevepaul.com

Just me
Guest
Just me

Christy Clark is out.
One can only wish she goes for good.
Christy, get a job as a PR person with one of your developes friends. Apparently there is money to be made selling out the lower mainland to rich Chinese.

Oracle
Guest
Oracle

Christy Who??

She is finished in BC. Hopefully the books at ICBC and Hydro and Site C contracts and Massey bridge can be opened up.

Hopefully Trudeau doesn’t have the RCMP by the balls.

bullwhip29
Guest
bullwhip29

the LG was certainly in a tough spot tonight but ultimately decided on playing it safe and keeping her reputation intact (for now). as the last several wks have shown us, krusty will resort to doing anything and everything to win and i have no doubt she’ll be louder and more boisterous as ever as opposition leader. imho horgan/weaver will have as tough a time getting anything done as trump (if not more so) as they navigate through minefields and a host of other obstacles. before for all is said and done i suspect the LG will have a plausible excuse to pull the plug on this whole circus routine in the not too distant future and call for another election.

Screwed
Guest
Screwed

Yes!!!! Victorious!!!!

Just me
Guest
Just me

Did.John Horgan just mentioned high house prices as one of the top three priorities (together with the softwood lumber dispute and education) for his new government?

This is getting better by the minute. Please John, do something about house prices. It will buy you re-election by itself.

Oracle
Guest
Oracle

House prices need to be brought down ideally by 30% Province wide. About 50% in metro Vancouver.

But we need tax money as well. 2% annual property tax surcharge is a start for foreigners, astronaut families, and 2nd homes.

The Greens and David Eby are game!!

Woooo!

Dave
Member

Politics is the art of the possible. I think there are too many conflicting interests for the government to do anything substantial. Prepare to be disappointed.

The best hope is that the government is incompetent and damages consumer and business confidence, which would take real estate with it. I’m blown away that almost nobody sees a downside housing risk with this new government. But I guess when you’re in a bubble, everybody is convinced of a new normal.

Oracle
Guest
Oracle

Hate to be owners of multiple properties tonite.

Taxes they are coming for you!

Also, expand the FBT province wide. And let’s pressure the NDP to raise the proposed 2% annual tax to 4%. Hehe

Oracle
Guest
Oracle

We have to pay for services somehow.

Tax the heck out of astronaut families as well. They’ve had it too good for too long.

Kim
Guest
Kim

I’d be more worried about rate hikes. I know someone (a doctor) with 4 million dollars in mortgages. An increase in 1% is 40k a year, over 3k a month. I’m not sure raising your rents will cover that.

Oracle
Guest
Oracle

Where is everyone?

YVR? Space? Shit it? Newcomer? Whistler?

Where are you?

southseacompany
Member
southseacompany

“Markets ‘bashed over the head’ as Bank of Canada hints at rate hike”, BNN

http://www.bnn.ca/markets-bashed-over-the-head-as-bank-of-canada-hints-at-rate-hike-1.791440

“Debt-laden Canadians can’t say they haven’t been warned.
Bank of Canada officials have been beating the hawkish drum in recent weeks, but not everyone was fully convinced about a rate hike until Governor Stephen Poloz doubled down Wednesday on the tough talk.”

southseacompany
Member
southseacompany

“Global bonds sell off as central banks signal end to easy-money era”, MarketWatch

http://www.marketwatch.com/story/global-bond-yields-march-higher-as-easy-money-era-shows-age-2017-06-29

“A global bond selloff continued on Thursday, heaping pain on bondholders and driving some yields to their highest levels in more than a month, as investors digested messages from central banks this week on rolling back easy-money policies.”

trackback

[…] –Global bond sell-off –69% chance of july rate hike –CAD$ jumps to 4 month high –We used to be savers –Vacancy tax looms –Condo prices up or down? – […]

wpDiscuz