Interest rates. The US goes higher. Will Canada? What is your best guess?

Interest rates. The US goes higher. Will Canada? What is your best guess?

Investor Asked on February 3, 2025 in Real Estate.
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The BoC interest rate announcement is January 29, 2025. Also the quarterly Monetary Policy Report will be released then. So far, the BoC has reduced the policy interest rate by a total of 1.75%  since June 2024. Now at  3.25%. We expect the Bank to go down another .25% that day to 3%. RBC and other majors see the rate go to as low as 2% by summer. You mention the word ‘guess’. That’s what we all do now. Just remember: the overnight bank rate sets your credit cards, bank loans and variable rate mortgages. NOT your fixed loans/mortgages and otherwise. The big difference always what bond rates do (what investors want as interest to buy bonds), but the bank rate is determined by the central bank in every country depending on economic circumstances. The US dollar gets STRONGER, but the rise in U.S. yields sent jitters through markets overseas. In the U.K., benchmark bond yields headed for a sixth straight daily advance, and the pound weakened further. Stock indexes fell across Europe and Asia.

Guru Answered on February 3, 2025.
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