Jumbo Rate Cut From the Bank of Canada Next Week

Inflation slowed more than expected, coming in at 1.6% and below the BoC's target range. The Bank of Canada is now poised to deliver a 50bps rate cut next week. The housing resale market is showing signs of coming back to life, notching a noticeable increase in activity in recent weeks. This should not be unexpected given the recent decline in mortgage rates. The BC housing market awaits the results of the provincial election.

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[Kin--]

All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.

[paulinebowen]

4% is not cheap when home prices are over $1 million.

[Stormshfter]

No point in asking the govt to save us.
They're too busy trying to stay out of jail.
We're on our own.

[kevinbarr]

Watch a 50 point rate cut and our hurting currency will drop yet again. What I miss about the Harper era was being able to take a trip to VEGAS when our currency was $110 to US dollar. In the good old days Canada was a place that welcomed business investments and capital to flow in and our currency was very strong. Now, we are nearing record low weak currency and a 50 point cut will drop it even further egads we are in need of an election.

[RampKevorkian]

Hit 401k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in July 2024..,

[stevenoropel]

his real estate agent hat was definitely on creating this video

[donm]

Ill just be over here stacking firewood, its going to be a long winter.

[simonyyy]

The BOC is trying to save the asses of a significant percentage of mortgage holders who by their own errors overextended themselves. Subsequently, all Canadians will suffer inflation we can’t afford. Does the 1.6 % inflation touted by the government make sense to anyone who just visited the supermarket?

[dinagallis]

Ok OK we promise .. we are all going to go out and buy a 2M dollar house on Thursday 🙄

[-SILON]

4 isn't cheap when you're holding 800, 000. Massive difference between 1.5 and 4. Not like people should have ever been given a 1.5 but here we are. When all the renewals come in, there's going to be increased sales and way less consumption.

[JohnMayervich-nqjh]

Gold and Silver will fly with interest rate reduction. The fiat currency is under attack!

[ScottWebbers]

Doesn't matter if rent growth has slowed and if inflation is slowed. The prices have still doubled and are not going down. I found a rental recently and let me tell you it was a horrible experience. Every house in the GTA is split between renters in the basement and upstairs. So maybe thats why price are "gowing down" or stabilizing because they're jsut stacking more people in the same space.

[SalamNaser-ch]

The rate should come back to 1.5 to afford those prices !!! The prices is too high and not reasonable at all!!!

[littlepinner]

Steve, I just want to point out that the conditions you outline today, particularly the stock market and gold hitting all-time highs, are eerily similar to 2007-2008:

• The US Fed increased the rate by 400bps (from 1% to 5%) between June 2004 and June 2006
• The US Fed started easing with the first rate cut of 50bps in September 2007
• The S&P 500 and Dow Jones hit all-time highs in October 2007, just after the first rate cut (note: they bottomed in winter/spring 2009)
• Gold continued to rise into 2008
• Everyone was calling for a ‘soft landing’

I’m not suggesting that we will have another US housing collapse like 2008; just that the current conditions are mirroring 2007 and back then, it wasn’t a sign of good things to come or long-term easing in credit conditions.

[quantifiablyqorrect]

4% is not rates and housing prices should both go down 50%. Inflation will shoot back up soon just watch

[quixomega]

A 50 point rate cut means the BoC thinks the economy is on fire and can't take the current, quite low rates. That's very concerning.

[rp]

imagine believing inflation data when they can change the 'basket' to whatever supports the desired narrative

[Richard.C-Oak]

Great video as always! The discussion about the Bank of Canada and the potential need for significant rate cuts is crucial in the current economic climate. Is there an equivalent of the CME Fedwatch tool for the BoC to look at the market sentiment/forecast of their future interest rates decisions? Thanks in advance!

[kuie]

Does it really matter what the interest rates are? BRICS summit starts this week where they plan on releasing a currency backed by gold..

[nickzivs]

Well, thank goodness housing has corrected back to affordable levels before the next leg of the perpetual bull begins to run. For a moment I thought all us youngsters would continue to be priced out. Oh wait … 🥴