Happy Monday Morning! To no surprise, the Bank of Canada raised rates again this past week. Another 50bps. Interest rates are now up a whopping 400bps since this tightening cycle began in March. According to Macquarie Research, this is the sharpest calendar year of rate hikes on record going back to 1936. The most common rebuttal you see circulating online is that rates are still low from a historical basis. While that may be true it is an irrelevant point if you’re not also considering the levels of debt.
Hey Steve. Thanks for the report today. Yes inflation will come down but probably much faster if the Liberals would cancel all of their stupid carbon taxes. They are punishing those that can least afford it while doing zero for the environment.
Good article. But I think actual household debt to income is nearly 130%. Rosenberg in a recent article has indicated there is no way to avoid a recession. Whether you agree with him or not the indicators he refers to are real. Also indicates the correction will be either a large (2% b of c )decrease in interest rates or reduction in home prices of 30%. Will be further aggravated if a recession drops household income.
Hey Steve. Thanks for the report today. Yes inflation will come down but probably much faster if the Liberals would cancel all of their stupid carbon taxes. They are punishing those that can least afford it while doing zero for the environment.
Good article. But I think actual household debt to income is nearly 130%. Rosenberg in a recent article has indicated there is no way to avoid a recession. Whether you agree with him or not the indicators he refers to are real. Also indicates the correction will be either a large (2% b of c )decrease in interest rates or reduction in home prices of 30%. Will be further aggravated if a recession drops household income.