Rate Update – May 2020

Rate Update – May 2020

With all of the economic upheaval in the last 2 months, we have seen the Bank of Canada drop their overnight rate down to 0.25%. It is projected to stay there for the foreseeable future. Any hope of an economic recovery is tied to a potential vaccine and until we have one, we can expect the recovery to be slow. A slow recovery means a long recessionary period or best case low GDP growth. You can expect the Bank of Canada to leave its rate where it is until 2022.   Meanwhile, the fixed-rate market has started to fall back down to earth.  We are seeing rates in the mid-2% range, so some people will be tempted to ditch their variable rate mortgage in favour of a long-term fixed rate.  It’s...

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Trade Disputes Dampening the Economy

Trade Disputes Dampening the Economy

The ongoing US-China trade dispute will continue to play a major role in dampening the US economy. According to Benjamin Tal’s recent article, more and more studies are debunking Trump’s claim that Chinese companies are bearing the brunt of the tariffs. While in fact,...