Bank of Canada Holds Interest Rates – Inflation, Canadian Real Estate to run HOT

#BankofCanada #CanadaInflation #CanadianRealEstate The Bank of Canada announced it would hold interest rates steady today, but shocked many analysts by announcing they would be continuing monetary support for some time. Citing Omicron and the BC Floods, the Bank noted that…

Bank of Canada Holds Interest Rates - Inflation, Canadian Real Estate to run HOT

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#BankofCanada #CanadaInflation #CanadianRealEstate

The Bank of Canada announced it would hold interest rates steady today, but shocked many analysts by announcing they would be continuing monetary support for some time. Citing Omicron and the BC Floods, the Bank noted that Canada would require monetary support for the foreseeable future.

The Bank seemed to indicate that they would let Canada’s inflation rate run hot and keep their monetary policy unchanged, arguing that further support is needed (even with Canadian GDP up to over 5 percent growth, and 154,000 jobs added to the Canadian economy).

But the Bank of Canada will not be able to continue to kick the can down the road forever – eventually, especially in the face of red hot inflation in Canada, it will have to raise interest rates.

Expect Canada’s real estate market to continue to surge, as home buyers, real estate agents, and most on-lookers expect that the rate hikes are coming – and the longer the Bank of Canada waits to act on raising interest rates, the faster the pace of those rate-hikes will have to be.

Links:

Posthaste: The loonie is soaring above forecasts and come Wednesday could fly even higher:
https://financialpost.com/executive/executive-summary/posthaste-the-loonie-is-beating-forecasts-and-after-wednesday-could-fly-even-higher

Jobs blockbuster changes equation ahead of Bank of Canada rate decision:

https://financialpost.com/news/economy/jobs-blockbuster-changes-equation-ahead-of-bank-of-canada-rate-decision

Bank of Canada maintains policy rate and forward guidance:

https://www.bankofcanada.ca/2021/12/fad-press-release-2021-12-08/

Bank of Canada to Lay Groundwork for Rate Hike: Decision Guide:

https://www.bloomberg.com/news/articles/2021-12-07/bank-of-canada-to-lay-groundwork-for-rate-hike-decision-guide

Bank of Canada holds key rate, warns high inflation to persist into 2022:

https://globalnews.ca/news/8433394/bank-of-canada-interest-rate-decision/

Posthaste: The holiday shopping season is here and Canadians are eager to spend:

https://financialpost.com/executive/executive-summary/posthaste-the-holiday-shopping-season-is-here-and-canadians-are-eager-to-spend

Bank of Canada says inflation will near 5% by end of year, staying higher for longer than forecast : https://globalnews.ca/video/8329105/bank-of-canada-says-inflation-will-stay-higher-for-longer-than-previously-forecast

Canadian consumers power 5.4% annualized growth:

https://www.bnnbloomberg.ca/statistics-canada-scheduled-to-detail-third-quarter-gdp-figures-1.1688906

Canada’s economy cranks out 154k jobs, quadruple expectations:

https://www.bnnbloomberg.ca/canada-s-economy-cranks-out-154k-jobs-quadruple-expectations-1.1690642

Canadians plan holiday shopping with a vengeance and in-person:

https://torontosun.com/news/canadians-plan-holiday-shopping-with-a-vengeance-and-in-person

The Federal Reserve Needs to Act on Powell’s Words:

https://www.bloomberg.com/opinion/articles/2021-12-01/the-fed-needs-to-accelerate-the-taper

Markets had become blase about the COVID threat. Omicron changed that in an instant:

https://www.smh.com.au/business/markets/markets-had-become-blase-about-the-covid-threat-omicron-changed-that-in-an-instant-20211129-p59czt.html

Powell says time to retire ‘transitory’ when talking about inflation—and stock markets tank:

https://www.marketwatch.com/story/powell-says-time-to-retire-transitory-when-talking-about-inflationand-stock-markets-tank-11638305094

Canadian home prices poised to surge again as buyers rush to beat rate hikes:

https://financialpost.com/real-estate/up-up-up-canada-house-prices-poised-to-surge-again-despite-central-bank-warning

Global Bond Rout Shows Doubts on Central Banks’ Rates Patience:

https://www.bloomberg.com/news/articles/2021-11-10/u-s-30-year-yield-surges-after-auction-tails-in-wake-of-hot-cpi

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