Canadian Overnight Rate goes up the day when Tiger in Georgia killed by Polica
On Sep 6th, 2017 The Bank of Canada is raising its target for the overnight rate to 1 per cent. Is this good news for bad news? I think it’s good at least it can only happen when the economy turns better!
Like stated in website Bank of Canada, ” Recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. Consumer spending remains robust, underpinned by continued solid employment and income growth. There has also been more widespread strength in business investment and in exports.”
Although “the housing sector appears to be cooling in some markets in response to recent changes in tax and housing finance policies.” I believe the fair house policy and non-resident house tax in April 2017 started the turning point of Canadian real estate, and the interest rate hiking will make sure the downturn is still on the way. but is it scaring like the tiger? No, I don’t think so! the measures being taken are more to the benefit of whole economic health and in long term is helping real estate. People will do adjustment accordingly and those who still have affordability will continue to follow their heart!
Let’s review the recent 10 years interest rate, it’s still in low range, isn’t it?
source: tradingeconomics.com
Here is a bigger picture from 1990 up to 2017
source: tradingeconomics.com
At the same time, the news Tiger Wandering Georgia Highway is Shot and Killed by Police was twittered to me, I murmured to myself: Hiking rate is not as Violent as a Tiger!