From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
Global Stocks Head for Worst Week Since March Amid Central Bank Rate Hikes and Profit Warnings
According to BNN Bloomberg, global stocks are heading for their worst week since March as worries about China and higher global interest rates. This has pushed up bond yields and heightened fears of recession.
This downturn is reflective of the uncertainty prevailing in financial markets, with a combination of factors contributing to the downward spiral. Anxieties over the resurgence of COVID-19 variants, coupled with potential tapering of central bank stimulus measures and supply chain disruptions, have created a perfect storm of uncertainty, prompting investors to reevaluate their positions and adopt a more cautious approach.
The week's market performance has been characterized by sharp declines and wild swings, with major indices across the world experiencing significant losses. These fluctuations have underscored the delicate balance that currently exists between economic recovery and the challenges posed by ongoing global issues. As central banks grapple with the decision of when and how to reduce their monetary support, and as nations work to manage and mitigate the impact of pandemic-related disruptions, the markets remain in a state of heightened vulnerability. Investors are carefully monitoring economic data, public health developments, and policy decisions, all of which will play crucial roles in determining whether this downward trend will persist or if markets will regain their footing in the weeks to come.
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