Comments on: Canada’s Inflation Hits The Highest Level Since 1983, But It’s More Like The 70s: BMO

By: Scott

Scott — Fri, 24 Jun 2022 21:09:36 +0000

Just another “unknowable” consequence of massive market interference. Wasn’t Trudeau in charge the last time this happened?

By: So Ki

So Ki — Fri, 24 Jun 2022 16:24:40 +0000

How do you roll in the rate hikes into cost of a home? Higher mortgage rates rise, lower house values fall. Every single time. The slower the rate hikes, the longer the pain in real estate. Each 0.5-0.75% rise will shave 20% off. As the saying goes, asset prices take the stairs up and the elevator down.

Idiots are in charge. Agreed.

By: Grut

Grut — Thu, 23 Jun 2022 20:13:00 +0000

In reply to Yoroshiku. I don't think they're scared of a house price collapse so much as they wanted a house price boom to make people feel rich so they'd go out and spend.

By: Trader Jim

Trader Jim — Thu, 23 Jun 2022 20:12:14 +0000

In reply to Kurt. The slower they hike rates the more likely the rate hikes get rolled into costs, which is the worst of both worlds. Exactly how the 70s bubble blew. Slow hikes all the way up the chain allowing it to adjust to each additional cost with more inflation. Idiots in charge. Every one of them.

By: Randy Webber

Randy Webber — Thu, 23 Jun 2022 20:02:23 +0000

In reply to Kate. I think I heard this from one of their videos, but the absolute level isn't nearly as important as the speed of deviation from the norm. By keeping rates low they let in much more debt, so a much smaller increase produces a much bigger hit.

By: Yoroshiku

Yoroshiku — Thu, 23 Jun 2022 17:15:41 +0000

Seems like BOC is being too conservative with the interest rate hikes. (Also seems like they’re scared of a massive house price collapse.)

By: Kurt

Kurt — Thu, 23 Jun 2022 16:19:14 +0000

Sounds like BOC are going to raise rates by 100 basis points this month. Which will do absolutely nothing to curb this runaway inflation. It’s going to be a bloodbath no matter which way you slice the cake.

By: Kate

Kate — Thu, 23 Jun 2022 12:42:37 +0000

What about the interest rate now ?