What the latest rate decision means for mortgages, GIC rates, the Canadian dollar and more
Financial uncertainties for 2025 are piling up, but we at least have a degree of clarity on interest rates and the economy.
A Donald Trump presidency could do some damage to your finances next year and beyond. Already, Mr. Trump’s threat of 25-per-cent tariffs on Canadian and Mexican goods has contributed to a weaker Canadian dollar and stalled declines for mortgage rates.draws our attention back to the real numbers and fundamentals at work right now.
A factor that potentially works against lower rates is a low Canadian dollar, which is helpful in one sense because it makes our exports more cost-competitive. But a weak dollar also feeds inflation. In fact, the our sagging dollar was cited as a reason whynext year will come in around 3 to 5 per cent next year, well ahead of the 2 per cent rate targeted by the central bank.
Default risk is also an American story, at least in a theoretical sense. The U.S. deficit is approaching extreme levels, worse than Canada, and bond market investors could at some point start losing interest in holding U.S. Treasury bonds. Rates would have to rise to keep these investors interested.Money is still going into guaranteed investment certificates at elevated rates compared to five years ago, but the more interesting story is what’s happening with the money flows from maturing GICs.
Canada News Breaking News Video Canadian Breaking News Breaking News Globe And Mail Breaking News Globe And Mail Canada News Photos World News Local News National News Us News Foreign News Sports News Arts News Life News Lifestyle Canada Traffic Canada Weather Trudeau Government Federal Government Canada Sports Canada Sports News Politics Politics News Political News Political Opinion Environment Economy Technology Education Travel Canada Alberta Bc British Columbia Manitoba Ontario Quebec Nova Scotia Pei New Brunswick Newfoundland And Labrador Nunavut Northwest Territories Yukon Globe And Mail
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada likely to cut 50 bps, slow the pace in 2025: BermanExpectations for interest rate cuts in Canada continue looking into 2025, with a 50-basis point (bps) rate cut this week priced at 85 per cent
Read more »
Emerging market central bank demand will drive gold in 2025 - Wells Fargo’s John LaForgeThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Canada tops Dominican Republic 88-71 in FIBA AmeriCup 2025 qualifiersSASKATOON, Sask. — Canada opened the second window of the FIBA men’s AmeriCup 2025 qualifiers with an 88-71 win over the Dominican Republic on Thursday at Sasktel Centre. Mfiondu Kabengele scored a team-high 17 points, along with two blocks.
Read more »
Hockey Canada announces free events for fans leading up to 2025 World Junior Hockey ChampionshipWith puck drop for the 2025 IIHF World Junior Championship just over one month away, Hockey Canada and the City of Ottawa announced community events and programs that will take place leading up to and through the tournament.
Read more »
Canada’s Main Stock Index Predicted to Rise in 2025 Amid Optimistic ForecastsAccording to a Reuters poll, Canada’s main stock index is expected to rise in 2025, driven by lower borrowing costs and a more attractive valuation compared to the U.S. market. However, forecasts suggest that returns may slow down as much of the positive news might have already been priced in by investors.
Read more »
TD Bank warns of challenging 2025 after profit miss; BMO earnings fall shortCanada's No.2 bank TD Bank on Thursday warned of a challenging 2025 and suspended its medium term earnings forecast as it works through its anti-money laundering remediation program following a U.S. regulatory probe.
Read more »