Once again lenders are increasing mortgage interest rates by as much as 30 bp to the 5.69% lever for 5 years. this was prompted by the hawkish talk of the bank of canada outlining they are likely to increase interest rates prior to the end of the year. The banks are jumping the gun to increase their spreads ...why ?....because they can !
time will tell if the bank of canada goes through with the increase - they are caught between a rock and a hard place - they have finally agreed there is inflation in the system, something we have all known - especially anyone who has a car, uses electricity, eats fresh vegetables, heats their home or pays property taxes. DUH>>>>> the bank is behind the 8 ball on this one.
The only tool they have is to control the bank rate - an increase will likely send the canadian dollar closer to parity with the US counterpart - which in turn will hurt our exporters - this could cause additional loss of jobs - and you cannot get those back in an instance - a credit crunch is coming - i am personally hoarding my cash - and reducing debt - i suggest you do the same......
gregyoose out - (where are the ice cubes and olives ?...my god have you seen the price of olives lately ????)
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