Finance Moves Again on Mortgages

In a surprise move Finance announced recently that it is again making changes to mortgage borrowing practices in Canada. The surprise is in the timing of the announcement given that the housing market is already starting to soften. The move probably reflects the realization that interest rates will remain unchanged for longer than previously expected, […]

Former BofC Governor Plays Down Household Debt Warnings

Canada’s current and former central bankers seem at odds over the country’s soaring consumer debt, with former Bank of Canada governor David Dodge playing down warnings by his successor, Mark Carney. “I don’t think it’s in trouble,” he said, noting most consumers aren’t overexposed. In areas where employment levels remain high (such as Alberta, which Statistics […]

Inflation Dips – Pressure to Raise Prime Rate Decreases!

Canada’s annual inflation rate dipped to 1.9% in March from 2.6% in February, largely due to slower year-over-year increases in prices for food and energy, Statistics Canada said on Friday.  The Bank of Canada uses interest rates to reach its target inflation rate of 2%.  With the current inflation rate coming in at below target, […]

Bank of Canada Maintains Prime , Hints at Future Increases

The Bank of Canada yesterday maintained it’s key overnight lending rate at 1%, holding the Prime rate on which Variable rate mortgages are based at 3%. In their press release, they listed several factors being considered in the decision…. “Overall, economic momentum in Canada is slightly firmer than the Bank had expected in January.” “…The […]

Finance Minister Jim Flaherty thinks Banks are a “Bit Odd”

Read the full article in the Montreal Gazette Here “I find it a bit odd that some of the bank executives are taking the position that the minister of finance or the government somehow should tell them how to run their business,” Flaherty said in Stittsville, Ont., just west of Ottawa. “We have bank executives […]