Bank Of Canada Is About To Get Crushed By The Fed

The Bank Of Canada risks falling too far behind The Fed on interest rates, which could have significant repercussions on both the Canadian dollar and Canadian inflation.

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[jimmybaggs]

Canada would be much better off becoming part of the United States. We would have a stable currency and our services would be cheaper once our oligopolies are exposed to actual competition.

[davidkania]

Raise the rates and crush this housing bubble 🫧

[Hazara]

And tiny home in Canada is closed to million and above but in US the same home size is around 3 to 4 hundred thousands. So I would say 7% interest rate in US equal to 5% in Canada. Because, in US price of goods are way cheaper than Canada.

[gladeous]

Why doesn't Canada also have 30 yr mortgage terms like US?

[davidcar]

Bank of Canada = Bank of Real Estate of Canada

[dyingpentas]

Great video! You explained it so well. BOC is really caught between a rock and a hard place. USD to CAD is already at 1:35. They will feel the pressure if Fed decides to raise either another 25 or 50 bps

[shieh.]

Look. The world where all currencies are even is not the norm. Very rarely in our history is a pound, US dollar, Canadian dollar, yen, and won all trading at 1:1 which has been happening over the past 15 years. It's actually very abnormal. A Canadian dollar in the 70 cents to US dollar is quite common because of our proportional economic differences. A dollar trading in the 60 cent range isn't uncommon either. The chickens of allowing people to use equity in their homes to take out more loans is coming home to roost. Truth is, there is no way out of this without those who took big leveraged risks seeing negative equity. There's no such thing as free money.

[EmilyHamsterLover]

The world will be divided into 2 people groups.
Those who make and sell goods, will be wealthy, vs. those who work a JOB and buy goods. Will be poor renters for life unfortunately...

[tonemeister]

How are people able to simply lock in without penalties and expect to be better off? All about cash flow. Mortgage brokers should have been giving better advice based on households cash flow positions. It is not about always choosing the lowest rate

[christianduval]

Fed 6% this next

Also CIBC helping homeowner to modify mortgage up to 35 years and more avoid forclosure

[markhunt]

Tiff knew that when the BoC paused the Fed would not. He knew the Loonie would sink. But he needs people crying about the weakened Loonie to offset the crying about mortgage rates. So, when a sufficient number of people express concern about the lower Loonie, Tiff will say we have to raise rates because of the lower Loonie and people’s concern about that. If he didn’t let the Loonie sink first, people would not express those concerns forcefully enough and the greatest noise would have remained those concerned about mortgage rates. So, this is all political but at the end of the day (well not in this March meeting because Tiff has to save face and stick to the pause) Tiff will be raising rates again sooner rather than later. Heaven help us if the Fed goes .5 in their next round.

[bat]

They need to stop raising interest rates and just let the currency fall. It has fallen in the past so this is nothing new. But you can't keep crushing the economy with interest rate increases.

[barrieskotaya-ostojic]

Canada can’t afford to pay the interest on the interest on the bonds if interest rates are hiked further.

[Hazara]

Everyone can't get a higher paying jobs. So in this case I would say BOC will say screw the middle class but don't let the CAD to weaken against US dollars. Who cares about middle class let them suffer and lose.

[schrodingerscat]

And if a Canadian has a credit card balance they feel the rate rise instantly. Canada is crashing.

[ineslake]

Thank you Nolan - much needed great Canadian content!

[Oldmanfreeride]

What debt risk off baby… bidding wars are back prices going up and no landing in the economy life is good 👍 its only up from here immigrants put a floor on the housing market. I can’t see anything going wrong from here the finance minister even said a little disconnected from the US would be a good thing for our economy so we could sell more products around the world. If you can’t trust the government who can you trust remember rate will stay low for a long time baby.

[ryanmuir]

Nah, this is the reason why a North American dollar wasn't adopted back when currencies were at par.
To maintain independent fiscal policy

[devstatingx]

Good job liberal voters. Prepare for pain!

[Casey-qmnd]

I follow the stock markets closely. Finally reality is setting in for the markets, they see a hard landing now. Main street always lags behind wallstreet. Still many people think rate cuts are coming in summer (like tom storey). They think inflation will be at 3% by summer. Mainstreet will get a nasty wake up call. London house prices shot up 50, 000 in a month due to weak hand macklem signaling a pause. Accelerating house prices will cause more damage in the end. Rates will be high for a long time, welcome to the new normal.

Agree about locking in.