Real Estate Blog - Bank of Canada

The Bank Of Canada Is Unlikely To Hike Rates Until March, Despite Soaring Yields: BMO

Posted by Teri-Lynn Jones on January 5th, 2022

Canadian bond yields are soaring, but the central bank isn’t expected to raise rates. At least not yet, according to an analysis from BMO Capital Markets. Government of Canada (GoC) bond yields showed a multi-year high for annual growth in 2021. This means rising market expectations of the overnight rate climbing in the near-term. Despite soaring yields, BMO doesn’t see the Bank of Canada (BoC) raising rates in January. Public health measures make that unlikely, but they still do see an early hike.

Canadian Bond Yields Are Rising At A Multi-Year Record Pace

The GoC 5-year bond climbed at one of the fastest rates ever last year. The yield ended 2021 at 1.264%, up 86.5 basis points (bps) from a year before. It was the biggest…

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Canadian Mortgage Debt May Have Just Passed Its Peak Growth This Cycle

Posted by Teri-Lynn Jones on November 24th, 2021

Soaring Canadian mortgage debt might finally be showing some signs of cooling. Bank of Canada (BoC) data shows outstanding mortgage credit hit a high in September. Annual growth is now rising at one of the fastest rates in over a decade. However, the pace of borrowing is falling very quickly. This might be a sign we’re past the peak of growth for this credit cycle.

Canadian Mortgage Debt Hits $1.77 Trillion

Canadian mortgage debt reached a new record high and did so at one of the fastest rates in history. Mortgage debt for housing hit $1.77 trillion in September, up 0.7% ($11.5 billion) from a month before. The balance is 9.6% ($155 billion) higher compared to the same month last year. Only August’s annualized growth showed a larger dollar…

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The Bank Of Canada May Need 8 Rate Hikes To Combat Inflation: Scotiabank

Posted by Teri-Lynn Jones on November 2nd, 2021

Canadians might see much higher borrowing rates in the not-so-distant future. Scotiabank chief economist Jean-François Perrault has forecast up to 8 rate hikes within 2 years. He sees elevated inflation backing the Bank of Canada (BoC) into a corner on the issue. Inflation appears to be a lot less transitory than thought. If that’s the case, the central bank will be forced to move, and address the highest inflation rate in decades.

Canadian Interest Rates Forecast To Rise 200 Basis Points

The bank’s economists are calling a very sharp climb for Canadian interest rates. They have forecast an increase of 100 basis points (bps) in the second half of 2022. It would be followed by another increase of 100 bps in 2023. An overnight rate of 2.25% would…

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