Bank of Canada Cuts 50bps, Says Price Growth Isn't Slam Dunk

#bankofcanada #canadianeconomy #canadarealestate

The Bank of Canada cut interest rates by 50bps this morning, which had 0 impact on fixed mortgage rates – something addressed by Governor Tiff Macklem at the Bank’s Press Conference. The Bank noted its worry Canada’s real estate market could take back off on the Bank’s lower policy rate.

Links:

Release of the Monetary Policy Report / Publication du Rapport sur la politique monétaire:

Monetary Policy Report Press Conference Opening Statement:

Bank of Canada nears decision on oversized rate cut:

New 30-year mortgage, down payment rules stoke fears of rising home prices:

Canada 5 Year Government Bond:

Bank of Canada plans to keep interest rate near zero until 2023:

High inflation is ‘transitory but not short-lived,’ says BoC governor Tiff Macklem:

They bought their home in March 2022. Why this Ontario couple calls the purchase a nightmare:

Mark Mitchell – Mortgage Broker London Ontario
920 Commissioners road east
London, Ontario N5Z 3J1
Phone: [phone] (Call or Text)
Brokerage Lic: 10464
Broker Lic: M16001479

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Commentary on this Channel should not be considered financial advice.

[jordanw]

Out of all the channels I follow I was actually waiting for your video to come out on this. Always looking forward to your insights.

[MM-xgtd]

The problem is the BOC overshot the rates and like I said earlier if we are in a recession(which we are) the rates will have to be cut aggressively. Some are now predicting a .5 in December and AT LEAST a .25 every other meeting IF the economy does not get worst which would place the BOC rate at 2.5% in April. I expect it to go a lot lower.

[typicalc]

I didn’t realize the mortgage rates DIDN’T go down in tandem with the BoC rate. I’ve been told this by bankers for years! Now to look into how the bond rates affect it.

[kevinn]

When I saw BOC cutting early in the summer I thought, Ok we are in trouble. The gov't has done nothing to address the high prices in the real estate sector and now the whole economy is in trouble. So the BOC are now panicking.... I really wonder where we go from here. We either get a correction or we drag on with stagflation for years to come.

I think going forward, the first time buyers might just stay on the sidelines not being able to buy for a long time. Prices are still out there in left field. Is it just people who've owned buying and selling now?

[kapasitorcpt]

With Freeland saying government can spend more, am not surprised

[jeradthon]

Another great video. I’ve heard from realtors and my mortgage advisor from my bank that the BOC will be cutting rates and everything is going to come down. I feel like telling them it doesn’t affect the long end, but keep it to myself. So many bad or misinformed actors out there giving people poor advice.

This channel is an exception to that.

[Justin-vgkw]

This could sadly inflate the house price further while salary has barely increased.

[NotFinancialAdviceRG]

Rates go down, Yields go up, inflation keeps marching higher

[mogulrider]

I'm not shocked that most folks think the BoC affects their fixed mortgage rate. 🤣🤣
I'm also not surprised that most folks have no idea what bond vigilante is

[bills]

So for people buying a house or a builder building a subdivision nothing changes. Good luck with that.

[althunder]

The BoC is good at predicting the past.

[jasminhabeeb]

Bad times ahead for Canadian businesses..

[phil_aesthetics]

oh I am spending more all right.... on food. It literally goes in the toilet

[patriciamoore]

I have no money left to spend in trying to servive with food and now homeheating.

[RainMan]

when that reporter asking for another 50bps, i idied inside

[bills]

Rate cut might be enough for the rich guy but not far enough for the average citizen.

[bilbobaggins]

Great analysis Mark as usual. When are you getting your media credentials to attend these meetings? You're obviously smarter than most of the media members they are letting in!

[stynger_OO]

Should be at 2.75% already dropped the ball unemployment too high overshot inflation tiff needs to be fired

[Stormshfter]

Cutting rates ahead of the US doesn't really work.
We cut 50 because J Powell cut 50.
Whatever J Powell cuts at the November meeting is the same as we will cut.
Once Powell cuts, the 10 year Treasury yeild will drop which will trickle into the 5 year CAN.
Like I always say, and no one likes to hear. Fixed mortgage rates are influenced by markets outside our borders.
If Tiff was asked about the next cut under a truth syrum he would of said "ask J Powell".

[DukeTVGaming]

Prices need to drop by a minimum 50% for anyone earning less than $100, 000 to ever afford a home. Prices are nearly double or more than the US. Trudeau & the WEF have destroyed Canada