A SERIOUS WARNING About Interest Rates In 2023 - Bank Of Canada

Bank Of Canada Governor Tiff Macklem is warning Canadians not to expect interest rates to come down anytime soon. The expectation that interest rates will start to fall at the end of 2023 is becoming less and less likely.

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[memineaussi-cjop]

Interest rates going back up is why I went for a 10 year mortgage. I know how much my mortgage payments will be, the payments are affordable for me and match what my last rent was, and I have guaranteed the payments won't go up for the longest period of time available to me. Plus, I have a second bedroom&bathroom I can rent out if the budget becomes too much for me.

It's kinda like being in line at the supermarket; no matter how quickly a line is moving it'll slow to a crawl after I join it. So I made the best decision for me.

[CanadaTop]

it’s like climbing up the stairs and then coming down. each step is 25 basis point. BOC jumped steps while raising rate but they will come down one step at a time. So irrespective of when they start lowering, it’s going to be really slow. May even take 2 years to get down to 4% mark

[MaxAntihero]

The bank of Canada had no plans to raise rates remember that.

[jmc]

Cottage owners, condos in a city of work or seasonal use (not primary residence) reportedly incl in data for investor owned RE. What if reports excluded data? I’m guessing RE owned by non Canadians and other criteria can be pulled out as well or marked in graph? Raw data should be accessible to public.

[vert]

a mortgage broker advising you to lock into a fixed, high rate, mortgage. FACT: if rates stay where they are, it will break the canadian economy, and impoverish a million canadians. Will the government let that happen? thats the real question. Not if/when rates will go down.

[marcoafmonteiro]

"We are prepared to raise our policy rate further" is the new "interest rates will be low for a long time", i.e., he is just doing forward guidance. In this case he is lowering inflation expectations so people do not hurry to buy stuff before it gets more expensive, further accelerating inflation. I don't believe anything this people say.

[johnnieblades]

I keep getting letters from the bank about our mortgage payment being in question due to how the principal is being paid at less than 200$ of our 2.4k mortgage. We got this mortgage in April 2021. Our budget is our budget at 2.4k. Can't increase. Now our mortgage is at 64 years outlook. Not sure if we keep ignoring these letters or get a fixed rate. It's lose lose it seems.

[chachalaca]

Just wait until OSFI releases new lending rules in conjunction with a spike in inflation/rates and a ton of sellers who have been ''waiting for rates to drop'' list this summer...It will be a perfect storm for prices to collapse. THEN just wait till the actual recession hits after summer, job losses, power of sale, even more price drops... If a seller is smart now is the time to get out of your position.

[Hazara]

Nolan, we know BOC is following what US is doing. But US economy is different than Canada by comparison. US economy is big and Canada economy is tiny compare to US. Homes in US is way cheaper than Canada and wages are more than Canada. Tiff is going to destroy ordinary Canadians and take their Savings and will give to banks. And when economy is screwed than he will resign and will take his bonuses and benefits and will get a job in some banks. And Trudeau and Freeland will pat on his back and will say good job Tiff for screwing the economy. And we will sit here and lose our savings and will do nothing. So this is the end of story. He didn't bring the food price down and can't bring it down. He didn't bring the gas price down and he can't bring it down. The rest of the things don't matter for people. Food and gas is important. Without food people can't live and without gas no business could run. He is just doing what other G7 countries are doing.

[branttrainstation]

The reason BOC is not going to lower interest rates this year because demand is still to high, not just housing but other product and services, unfortunately we have just to many people who are willing to pay the high price, there are to high demand for homes, even in the million dollar range, even through many home buyer have been push out of the housing market there other who are just waiting, Tiff Macklem may be worried because to many Canadian are in debt some over there heads but are able to balance there income vs there spending, our housing bubble has not pop, but some air has been let out but not enough, if U S drive our Canadian dollar down and China energy demand increase many company will need to hirer more worker putting more money into our economy driving inflation higher, so brace your self we will see higher interest rates until our economy and people stop making debt and borrowing

[burlsmcburls]

Still ... the BoC doesn't determine MORTGAGE rates. If inflation goes down substantially in 2023, why wouldn't lenders lower their mortgage rates? It's a competitive business. I think it's reasonable to expect inflation to go down substantially in 2023. If that happens, then it's reasonable to suppose that market forces in the lending industry will lower mortgage rates.

[bat]

why would I believe ANYTHING that Tiff Macklem has to say? he ruined his credibility 2 years ago when he said rates would stay low for a very long time. Nobody should ever believe him again, he works for the billionaires, NOT for you

[oilfan]

It seems that ego has a lot more to do with the Fed and BoC decisions. They were badly wrong before and appear ready to stick to higher rates regardless of the damage they do to ordinary people. Both heads seem astonished anyone would question them. To me this points to rates staying higher than they should for longer.

[luckyPiston]

Can anyone explain how rising interest rates in the face of increased energy costs (one of the factors Tiff talked about) somehow brings down said energy cost ?
How does rising interest rates quill inflation in the energy sector ?

[nairbos]

Hopefully this leads to lessened investor demand and falling or at least freezing home prices

[bhaskarmazumdar]

Nolan is it advisable to lock in? I have 3 years remaining in my term

[zafarhussain]

There is no case to lower interest rates now. Investors and economists are putting false pressure on BOC. Rates are going further up from here in the current year for sure. We have destroyed our lives by leveraging more than what we are capable of doing as a nation. And now we have to face the consequences. Thousands of middle-class families will be destroyed in a couple of years. God help us.

[tylerh]

How does increasing rates help home owners with affordability?? Its very unfair to ppl with mortgages

[dominick]

Did you lock in on your mortgage? If so, did you lock into fix 3 yr?

[Relaxlifeisshort]

Nolan I like your channel, but awhile ago you were saying its a good likely hood they will drop before 2024. Now you are saying the opposite.
Its sounds like whatever is the soup of the day.

If there is 2 more .50 increases or 4 .25 that will certainly put the economy in a recession if it isn’t already.

So actually no one knows.