Is the Bank of Canada finally done hiking rates?

[@MrFanstar007]

A well known economist by the name of Mohamed El-Erian and so many others economists have been warning the FED and our own Central Bank against keeping interest rate low long ago, but no one listened at that time. Now they are dealing with a runaway inflation and have no choice, but playing catch-up and raising rate mercilessly and savagely to cool it down. All I can see on the horizon is mounting of bankruptcy filings and mortgage defaults for many Canadians. THE ERA OF FREE BORROWING COST IS LONG GONE. Welcome to the new era where HIGH DEBT SERVICING COST becomes the new norm.

[@barbaracarter6726]

I went through the financial crisis of the 1980's when mortgage rates were over 20 per cent. So it is not exactly a new era of high debt servicing cost.

[@martinrev8487]

I am not sure if they are done hiking, but I am certain they are not done losing money (which the taxpayer has to cover).

[@parkerbohnn]

@Patrick O The taxpayers pay for all the foreclosures. The banks sold off the mortgages. Ultimately the taxpayers are on the hook.

[@jaymar1615]

Hopefully they will stop when home prices hit 2014 level...kind of sick watching the 1 in 5 homeowners that committed mortgage fraud being given a massive reward in home equity.....

[@carlgoldsmith6109]

If inflation stays high interest rates will keep going up. There are external factors that affect our inflation.

[@randybrown9706]

The carbon tax

[@parkerbohnn]

@@randybrown9706 Taxes are deflationary.

[@trekker8033]

I sure hope so, because it is so much harder for me now to repay my debt than it was in the summer! They keep raising it, bankruptcy, here I come!

[@parkerbohnn]

Get a job make some money and then you can complain like me that interest rates are far too low. I've been living off the interest on my money since I was 18 years old.😁

[@trekker8033]

@@parkerbohnn Yeah, well, obviously you're not a working stiff like the rest of us, hmmm Parker? Silver spoon was it?

[@georgehiotis]

Is the worst over? I would not bet on it. With a government not willing to address the real underlying catalysts for inflation and an unimaginative BoC Governor that incorrectly misrepresented this inflation crisis this calamity is just beginning. The Australian counter-part to Mr. Macklem apologized, we are owed an apology as well.

[@barbaracarter6726]

we need price controls. We are in a war. In face, we are in two of them - in Ukraine and the pandemic and its overflows.

[@doltonmurray1625]

By the second half of the year most of us will have lost our homes ! This archaic way of doing things just doesn’t work.

[@parkerbohnn]

All that matters is do the Chinese lose any homes? This is where all the housing inflation came from.

[@ALTSProductions]

The banks (including Scotiabank) make more money from higher rates (with their deposits at the BOC), on the other hand the BOC will actually lose money and the tax payer will be on the hook.

[@felixfrost1564]

That should be fine though since the central banks can always create more money?

[@parkerbohnn]

Very true.

[@parkerbohnn]

@@felixfrost1564 Bernanke and Greenspan should both be at the end of a noose for that as it should be a criminal act and was deemed that in Iceland as they locked all the bankers up there.

[@barbaracarter6726]

the BOC is going to lose money for the first time in history of the Bank.

[@barbaracarter6726]

@@felixfrost1564 they can't do that since it would be inflationary.

[@carlgoldsmith6109]

The BoC will keep hiking interest rates when inflation is 2%.

[@nunol1554]

no they won,t, they will stop once something crashes

[@parkerbohnn]

I hope you're right if inflaiton ever get down to 2 percent in our lifetimes.

[@christopherlau566]

Hope it'll not like what happened back in 1981 with 20% mortgage rate

[@tmic4790]

Thanks Trudeau for creating an even higher inflation for Canadians. He brought in higher gas tax… The Carbon Tax. Increase the cost of transportation you increase transportation costs, you cause everything to be more expensive. Double whammy is he allowed huge interest rate increases too. Bring on the next election please

[@awilliams4957]

Really bad winter

[@dtownssqwe]

Mall parking lots in the GTA are full can't find a spot to park, been that way all year, seems likes rate hikes don't affect people here.

[@barbaracarter6726]

are there grocery stores in those malls?

[@dtownssqwe]

@@barbaracarter6726 Yorkdale Mall, SQ 1 dont think so

[@whales302]

You'll never see inflation again at 2%. Those days are gone.....

[@dougreed736]

Then we will never see the canada we had again. Welcome to Mexico

[@colind7678]

This has happened before and will happen again. But it will return to low rates.

[@parkerbohnn]

@@colind7678 Only because they'll redefine inflation and tell us its very low when its actually very high.

[@colind7678]

@@parkerbohnn 😂😂😂

[@awilliams4957]

Here comes the housing crash.

[@marcoprolo7318]

Inflation will catch up with the prices anyway. And don't expect too much price decrease for quality items. They are rare on the market.

[@christianduval9067]

Since 2016.....most of the mortgage are stress test at 6%.....the BOC had to raise at 7% to see the real effect

[@conservativetrades6881]

Seems like these people getting interviewed has self interest. They keep saying slow down... interest rate hike .75x4 then .5 x2 were not going to stop from there. February 2023 will be .25 rate hike

[@parkerbohnn]

It's January and March unless there's a surprise hike.

[@barbaracarter6726]

each interest rate hike should be accompanied by a decrease in the salaries of the B of C execs. After all, there "has to be pain" for it to work, right?

[@Mike-xn8yt]

The fact a "senior economist" says one of the three reasons for high inflation is "Russia's invasion of Ukraine" and never mentions @JustinTrudeau insane deficits proves listening to these people is financially dangerous. Plan on rates going higher, history says rates have to go Above inflation to tame it.

[@barbaracarter6726]

is the plan working at all - except for making housing costis for Canadians head higher? How's your food costs. How's your electric bill. How's your property tax bll?

[@tienhuynh-xh5oo]

Hope the people be safe , hope they can pay for their mortgage , the bank so greedy . they want the people go bankrupt so they can take their house . First they gave low rate, then they jump up triple. FED UP. MESS UP

[@parkerbohnn]

Like fishing... give him a little line then reel him in. I remember the last housing crash era all the Pakistanis and Punjabs went home.

[@teresabolen6034]

None of them ever talk about who really controls the banks.

[@Sarahyangtoronto]

We need a new governor for boc. I have been voting the liberal but their monetary policies have made my life much worse. I care about social justice but I am losing the strength to do that with all my money going to the bank. I will not vote liberal next time or will probably not vote at all.

[@Philosopherkey007]

Forty three years ago interest rates were up to 10+ percent. Interest rates went as high as 21 percent in the 1980's

[@sidb9540]

price of a car was $2500 .. a home was going for $20,000

[@janetraats7380]

I worked in mortgages then, people with 75% conventional mortgages still lost their homes.

[@parkerbohnn]

I bought a lot of 50 year strip bonds in 1981 and 1982. I remember Canada Savings bonds paid 19.5 percent but the limit was a paltry 15 grand.

[@giorgiocisilino4874]

also sales tax was lower than now 12 and 15 percent if you buy a case of beer.so many of us Canadians are taxed to the max especially in BC.

[@barbaracarter6726]

I 'vas dere Charlie.

[@jaligawesa]

Oh 😮

[@MrManny075]

Why is it that all the countries that follow the same pattern end up with inflation if the US prints everyone prints too, it looks like Canada's inflation is not that big if the figures are real, Interest need to go above inflation to get it down the problem is inflation is not stoping is still growing by the days.

[@parkerbohnn]

Fortunately the PPI came in hot in America so hopefully infaltion will stay abound for a lot longer.

[@aminpop6674]

I don't think it's done We need Stephen Harper to do The Job not Justine Trouble 🙄

[@NewYork0110J]

Send TIM to taliban for Justice

[@colind7678]

Harper screwed all Canadians. He can F off.

[@WenzelDashington000]

Well done for the people who have overheated the real estate market with their overbidding. Eat ya soup now while proudly owning a house a bunch of selfish people. 😂😊

[@danielthen4415]

Wow,apparently the value of a lender from bank of china dares to give a large amount and light bank interest with a loan maturity of up to 45 years,the bank's interest is cheap......🇨🇳

[@guitarreroerrante]

That's when you call investment when it is really especulation... game is over

[@dano3952]

2023. ..January 25/February 50/March 25/ April 0/ May 25/ June 25.

[@parkerbohnn]

They hike every 6 weeks if they hike.

[@dano3952]

@@parkerbohnn This time they will surprise you . This is unprecedented and unlike typical predictable outcomes. Be ready!

[@nowistime8070]

hope is for losers

[@louiskwaku8879]

I think this is the last one. Better put my basement up for rent to cool this Beat down on my variable rate. This was definitely not what I was expecting with my raiable rate but I'm glad I did the stress test. If you used one of those brokers from brampton with no stress test Good luck. 😆 🤣 😂 😆

[@jaymar1615]

Joke might be on you most people lied on the stress test and when a large amount are in trouble and lose the home or are forced to sell that will hit your homes value good luck refinancing a home worth 400k less then you paid....🤣🤣🤣🤣 especially now that rates are 7 x higher

[@jigneshdevganiya]

the most expensive homes were bought by white people in January.

[@louiskwaku8879]

@@jaymar1615 my home already dropped by 300k from last year but I'm riding it out. Not selling any time soon.

[@jaymar1615]

@@louiskwaku8879 well that's what I'm saying man try refinancing that it's not just a renew at that point your lender may automatically do a reassessment on the homes value that's almost a given at this point.... and ask about new debts job ect....they can ask for the 300k difference upfront at renewal or deny that mortgage outright also remember the new HELOC rules are coming into play this year forcing another mortgage style payment on over leveraged homowners based on the 2023 current market value of that home.....

[@parkerbohnn]

Just pay the mortgage off when it comes due.

[@edocms]

Yes, please pause the rate for those who rushed and out-bid others to buy a home, and punish those who save.

[@parkerbohnn]

I've been living off the interest on my money since I was 18 in 1976. I've been robbed of millions of dollars in interest by the likes of Alan Greenspan and Ben Bernanke.

[@StonedViper]

Need 20% interest rates so i can cash in and quickly triple my retirement savings like my parents did in the 80's

[@brightlight3520]

At the expense of everyone else thanks

[@StonedViper]

@@brightlight3520 People survived high interest rates just fine in the past. I get it though, you want your $6 coffee every morning, new $1200 phone every 6 months, 3 TV's , 2 cars, a house, yearly trip to the islands but thats just gluttony. The government will teach you how to live more frugally when they implement their personal carbon footprint quotas in the near future.

[@sidb9540]

@@StonedViper no such thing in a capitalist world... no socialism here... high interest rates are sickening! :P

[@parkerbohnn]

I wish you had Tiff's job. I made nearly 100 million dollars in the late 1970's and early 1980's all thanks to Paul Volcker. Greenspan and Bernanke have stolen quite a bit of my money ever since. Interest rate suppression should be deemed a criminal act. They imprisoned all the bankers in Iceland for the same thing Bernanke and Greenspan did. I use to tip everyone 100 dollar bills back in that era.

[@parkerbohnn]

@@brightlight3520 Maybe if you got a job and saved a lot of money and learned about the rule of 72. It only took about 4 years to double your money back in that era. If you had money you'd understand high interest rates are a very good thing.

[@kenclarke769]

Canada needs to diversify immigration. We are truly being overwhelmed by immigration from countries like india

[@elizalee1214]

I think the officers in the immigration office are Indians too. As far as I know, Chinese students who paid triple tuitions, finished study, found a job, got married and had kids, got rejected for ridiculous reasons.

[@parkerbohnn]

They bring in 3rd world garbage to try to bring down wages and bring down the standard of living of all existing Canadians who already live here. This is one of the reasons so many people are leaving Canada.

[@parkerbohnn]

A lot of bucket sludge is coming in from Nigeria. The average net worth of the average Nigerian is about 20 dollars U.S.

[@damiencrossley7497]

*Reads title* PFF no! To hell with the poor right?

[@guestuser7814]

When Liberal spend is so high that liberals can’t afford to be liberal anymore. You reap what you sew. Enjoy the ride.

[@carlgoldsmith6109]

Oh my G-d these people are in denial Lol !

[@dano3952]

Especially that twit with the glasses cooked up like a rooster.

[@saphire7693]

Still not done emptying pockets!! Government is the biggest paid joke we do on ourselves.

[@newworld6474]

they have to crush the markets to get INFLATION under control ... there will major breakdowns ... especially in 2024 ish even if they pivot maybe in Fall 2023 ish ... the next several years will be internationally bad ... it will take several years to fix things ...

[@akirasathoshiyoshi4877]

No .not yet. They want the inflation to go down in couple of hours.Thats why they are increasing rates bi-weekly. Mr Bank of Canada, your medicine for inflation would take some time to process ,act and reflect the changes. Please be patient and wait for 3 months before the next increase. jujuju.

[@colind7678]

🤣🤣🤣

[@lapraxi]

Lord Bogdanoff everything is going according to plan

[@micrasystems]

I agree rates need to rise since last February but also agree inflation is mostly influenced by other factors not related to the BoC rate. Therefore I think the rate should have been raised to 1.75% to match the rate before the pandemic when inflation was 2%. Then work towards other factors like supply chain issues, fuel costs, and food costs.

[@MS-ii1sv]

People just have to experience some pain after living off their HELOC. It needs to go higher.

[@barbaracarter6726]

@@MS-ii1sv the B of C employees are the ones that need to experience more pain.

[@MS-ii1sv]

@@barbaracarter6726 Them too but why should anyone have sympathy for people borrowing to show off?

[@barbaracarter6726]

@@MS-ii1sv how can you judge if someone is borrowing to show off? I'm 78 and borrowed to have a home. That's not showing off.

[@barbaracarter6726]

having a home line of credit is the way banks set people up these days - they set it up at the same time as you take out your mortgage loan.

[@mongoblazingsaddles9440]

PM Zoolander will hand out more billions to offset the pain of higher interest rates which will produce more rate hikes.

[@colind7678]

🤣🤣

[@timmanto1022]

It will be 5% by the end of the fiscal year.

[@randybrown9706]

Bank of canada needs to claw back ALL the rediculous bonuses paid to the corrupt times two

[@colind7678]

🙄

[@Nina19525]

Hola…These banks need to go broke 😡

[@cheehincheong6719]

Canada hiding rates is not done as we sees the economy of US as we depend on.I think the worst yet to come if we don't protect our own interest first.

[@cathygibson5157]

Cost of living to high to live time to start EUTHANASIA

[@danielg1291]

They spend, you pay. Who gave no limit credit card to a kid?

[@christalmora5859]

Of course not, gotta hit that 8% goal of theirs.

[@wally7856]

8% ? lol, Hang on to your hats, like father like son.

[@Anonymous11175]

Punishment for those, who Over paid in housing markets and proudly Realtors put board as Over asking. 100K, 150K, 200K

[@patriciarobinson6081]

This is derived by greed, I am giving it 7 yrs get to that 2%

[@esparda07]

Oof, my heart goes to overleveraged households but they dug their own grave.

[@zomgoose]

It needs to go much higher.

[@johnboyshort5143]

and while all these rate increases accelerate at an unsustainable level---the banks are in profit heaven----and now we get to listen to them complain as foreclosures and bankruptcies rocket skyward lets see credit card debt locked at the rate it was incurred at--for starts...seems pretty ironic when my credit card companies are soliciting me to tranfer funds from other cards and will charge me a 1% fee up front----giving me 0% interest for 8-10 months---how can they do that lol.

[@parkerbohnn]

The loan loss provisions are an artificial expense if there's no loan losses.

[@giorgiocisilino4874]

in the CBC report back in 2006 banks were given a 14 billion dollar prop up on the taxpayers dime and the BOC every month gives the government money if the form of a check.it also takes 24 mnthsto see the effect of how the bank rate control inflation,gas and diesel is the major factor of inflation and supply chain issues,as most goods are transported by trucks that use diesel and diesl did cost more than regular gas.I think the BOCand the banks are truying to payback the 14 billion they got to their buddy the federal gov.