The same thing happened in the 1970's and they needed 21 percent interest rates to quell the second wave of inflation. Looks like runaway inflation in the near future in Canada as the Bank of Canada cut instead of raising rates.
Wage gains today came in huge at 5.1 percent almost a full point higher than in America. The Bank of Canada rate needs to be hiked to at least 6 percent to quell any wage inflation leading to an endless wage price spiral and runaway inflation.
The 5 year bond yield has snapped back today erasing all the loses from the rate cut up more than 3 percent today. Mortgage rates to rise not fall. Wage gains came in huge at 5.1 percent today job gains came in at 27,000, rents are still through the roof as the cost of living shifts into overdrive. Canada is looking at a wage price spiral and runaway inflation reminiscent of Argentina thanks to unnecessary rate cuts.
The interest rate cut by BoC before the US will certainly devalue the Canadian lonnie, which will lead to inflation again because imports are priced at US dollar. Further rate cuts will lead to loss of investments in Canada. It would be more beneficial for investors to move money to the US due to its higher ROI. Investors with money are that stupid.
Putting the cart before the horse . No need at all. Shouldn't have been done for at least 6 more months, until the inflationary carbon tax hikes have been felt. Now there's the latest tax grab by the federal government with the capital gains taxes piled on.
It takes two weeks for an ad to take hold of your desire. Desire is unattainable. Once you attain the thing you desire, you can't desire it any longer because now you possess it. Desire is unattainable. My spending habits, like my social and political habits, are outbound in scope. I give everyone what they want from me, on accident. I do it naturally because I'm the lab rat monetary capitalism wanted me to be as I grew up. How I personally have been spending money of late tells me everything I need to know about the economy. It wants my help. Well, I can only be the mirror I was reared to be.
So the mainstream media says. A 1/4 point will mean nothing in the grand scheme of things and regardless, every borrower now needs to jump through a higher hoop to get a mortgage.
Gasoline and food prices are not what form my beliefs about inflation. Can I get a mortgage? That is my measure of "inflation too high". And currently, inflation too high.
For most of us it means nothing. Most people will never own a home because any homes that are affordable are bought up by companies. Theres two economies in this country. The economy of Wall ST and the rich and the economy of everyone else. 50% of Canadians are one bad month away from homelessness, 25% only eat because of food banks. Do you think anyone of them care about interest rates? Corporations already making record profits jack up prices because of greed. It has nothing to do with interest rates.
So inflation in Canada is still not under control and the BoC cut rates anyways which will enflame inflation. Sounds brilliant.
The same thing happened in the 1970's and they needed 21 percent interest rates to quell the second wave of inflation. Looks like runaway inflation in the near future in Canada as the Bank of Canada cut instead of raising rates.
This is an epic policy mistake. Real rates must, I repeat, must creep higher. The only REAL cure for indebtedness is high real rates.
I know right? We need to jack up to 20% so I can earn more from my GIC accounts
Wage gains today came in huge at 5.1 percent almost a full point higher than in America. The Bank of Canada rate needs to be hiked to at least 6 percent to quell any wage inflation leading to an endless wage price spiral and runaway inflation.
The 5 year bond yield has snapped back today erasing all the loses from the rate cut up more than 3 percent today. Mortgage rates to rise not fall. Wage gains came in huge at 5.1 percent today job gains came in at 27,000, rents are still through the roof as the cost of living shifts into overdrive. Canada is looking at a wage price spiral and runaway inflation reminiscent of Argentina thanks to unnecessary rate cuts.
BOC has demonstrated again its incompetence
Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊
Means the monetary system is cooked
The interest rate cut by BoC before the US will certainly devalue the Canadian lonnie, which will lead to inflation again because imports are priced at US dollar. Further rate cuts will lead to loss of investments in Canada. It would be more beneficial for investors to move money to the US due to its higher ROI. Investors with money are that stupid.
A low Canadian dollar is good news for Canadian exporters though. That’s the other side of the coin that benefits Canadians.
@maxpayne7419 You should take a look at the historical data relating to interest rate cuts in Canada and their adverse effects on inflation.
Argentina here we come.
$700 000?
Get bent.
$75 000 and under please.
Putting the cart before the horse . No need at all. Shouldn't have been done for at least 6 more months, until the inflationary carbon tax hikes have been felt. Now there's the latest tax grab by the federal government with the capital gains taxes piled on.
Nothing
It takes two weeks for an ad to take hold of your desire.
Desire is unattainable.
Once you attain the thing you desire, you can't desire it any longer because now you possess it.
Desire is unattainable.
My spending habits, like my social and political habits, are outbound in scope.
I give everyone what they want from me, on accident.
I do it naturally because I'm the lab rat monetary capitalism wanted me to be as I grew up.
How I personally have been spending money of late tells me everything I need to know about the economy.
It wants my help.
Well, I can only be the mirror I was reared to be.
Real estate is set to go past the moon.
So the mainstream media says. A 1/4 point will mean nothing in the grand scheme of things and regardless, every borrower now needs to jump through a higher hoop to get a mortgage.
Great news for homeowners, and Canadians in general.
Gasoline and food prices are not what form my beliefs about inflation.
Can I get a mortgage?
That is my measure of "inflation too high".
And currently, inflation too high.
For most of us it means nothing. Most people will never own a home because any homes that are affordable are bought up by companies.
Theres two economies in this country. The economy of Wall ST and the rich and the economy of everyone else. 50% of Canadians are one bad month away from homelessness, 25% only eat because of food banks. Do you think anyone of them care about interest rates?
Corporations already making record profits jack up prices because of greed. It has nothing to do with interest rates.