With The Bank of Canada being the major news maker last week. The Bank unexpectedly dropped its key overnight rate at its Wednesday meeting - the first change to the rate since September, 2010. The Banks Governor explained that the rate cut was a form of insurance against risks which have arisen as a result of the sharp drop in the price of oil. He described the oil price drop as being unambiguously bad for the Canadian economy. The next meeting and rate announcement is scheduled for March 4th. Finance Minister Joe Oliver has said he will not interfere with the housing market – or force banks to lower their interest rates, despite the Bank of Canadas announced rate cut. TD was first out of the gate stating they would not pass on the rate reduction to consumers, it only takes one Bank to step up an say they are cutting their lending rate the reduction for the rest to follow. Wonder how clients feel that the banks want to earn more profit instead of passing on the client. Should be interesting TD Bank published a Special Report last week on the housing market in the Greater Toronto Area. In order to address issues like declining affordability and a record high gap between prices for condominium apartments and ground oriented homes will require a coordinated regional effort which includes the building of new transportation corridors and relief from some existing development regulations. Statistics Canada published December inflation data last week. Headline inflation dropped to an annualized rate of 1.5% for the month, down from 2% in November. Core inflation, which excludes some volatile components like energy and some foods, was 2.2% in December. The benchmark government of Canada five year bond yield ended the week at 0.79%, down sharply from 1.09% the previous week We are seeing the rate decrease on Fixed mortgages currently - Best Rate to date is 2.74 for a Quick Close.
Posted on: Tue, 27 Jan 2015 14:17:33 +0000
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