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Originally Posted by supafamous
I'm surprised that it was only 50bps instead of the widely predicted 75bps and the BOC's messaging implied that they didn't feel it was enough but they wanted to minimise further panic. The December update will likely be a 50bps instead of a 25bps now and folks are anticipating 25-50bps in the spring before things cool off.
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I'm surprised that it is only a 0.5% hike as well, instead of a 0.75% hike. I was really expecting a 0.75% hike too.
Quote:
Originally Posted by JDMDreams
I think they did the 0.5 cuz the gov themselves know we're in a recession, they just still aren't willing to admit it. Soft landing they say. Plus they themselves have a shit ton of debt that they have to service. How will they do that? They can't print more money, they will be very unpopular and will be kicked out of they cut services and raise taxes.
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Freeland has recently shifted her tone from emphasizing Canada's strong economic recovery as the pandemic wanes and the low unemployment numbers to warning of some tough times ahead. She was quoted for saying:
"Mortgage payments will rise. Business will no longer be booming," Freeland said. "Our unemployment rate will no longer be at its record low."
so I'd say at least our Finance Minister isn't blind to what is happening out there. Still, the BoC has indicated before that it is easier to correct an overly aggressive rate hike than to make up for one that is too soft, and that is why I was still expecting the 0.75% hike instead of the 0.5% hike that we get. I guess we'll see what happens up ahead in December.