BOC raises rates to 1%

[bizaro86]

http://www.bankofcanada.ca/en/fixed-dates/...ate_080910.html

The Bank of Canada raised rates again today, so variable rate mortgages and LOCs are about to go up. It`ll be interesting to see what the tipping point is for when it starts to really affect people`s attitude towards purchasing. Maybe it already has.

This will also put my choice last year of a 5 year fixed into the black shortly, as it was a 5 year, 3.69%, and the best variable I could get was prime +0.90%, which would now be up to 3.90%. We`ll see what happens in the next four years, but I`m starting to feel confident that fixed was the right move.

Any thoughts on what the BOC will do in October?

Michael

 

[housingrental]

I bet contrary to popular belief that we`ll see another rate raise soon - possibly not October though

 

[JoeRagona]

I agree Adam, I think there is still a rise coming but early 2011. Really though, it doesnt matter at least to my portfolio, I`ve factored in a rise in rates. I need to worry about increasing my portfolio not if my current one will be able to support the rate change. If that`s the case, you (not you Adam) have incorrectly analyzed the numbers at the start.

 

[ontariolandlord]

I`m certainly not worried or overly concerned.
However, I`m also not happy. Ontario has a $20 billion deficit and over $200 billion debt. Unemployment is still high. Rental rates have not made any large increase since 2007. The US is still in trouble. There is talk of a double-dip recession. The Canadian housing market is not on solid footing.

Why not simply hold the line? Even our Dear Dad Dalton McGuinty pressured the BoC to hold rates steady.