Skip to main content

Featured

Lock In or Wait? Why Two Big Banks Say Rates Are Going Up in October

  Published September 2, 2026 The Bank of Canada did exactly what all 35 economists in Reuters' latest poll expected today: it held its overnight rate at 2.25% for a sixth straight decision, keeping the prime rate at 4.45%. Bond markets had priced in barely a 3% chance of anything else. What's not settled is what happens next — and on that question, Canada's biggest banks are more split than they've been all year. Four of the Big Six expect the Bank to sit tight through the end of 2026. Two expect it to start hiking as soon as October. If you're renewing a mortgage in the next few months, that gap isn't academic — it's the difference between locking in now and gambling on a rate cycle turning against you. The Split, Bank by Bank Here's where the six largest banks stand on where the overnight rate lands by the end of 2026: Bank Year-end 2026 call Stance BMO 2.25% (hold) Hold camp CIBC 2.25% (hold) Hold camp RBC 2.25% (hold) Hold camp TD 2.25% (hold) Hold...
Post a Comment
Read more

article

Labels

Stock Markets: How High Interest Rates Are Hurting Bay Street

                                                    

Bay Street, the financial heart of Canada, is facing a tough challenge as interest rates rise and stock sales slow down. The Bank of Canada has raised its key interest rate four times since July 2020, reaching 1.75% in October 2023. This has made borrowing more expensive for businesses and consumers, dampening the demand for stocks and other riskier assets.

According to data from Bloomberg, equity offerings in Canada have fallen by 32% in the first nine months of 2023 compared to the same period last year. The total value of stock sales was $23.4 billion, the lowest since 2016. The decline was especially sharp in the energy and mining sectors, which have been hit hard by lower commodity prices and environmental regulations.

Some analysts expect the slowdown to continue for the rest of the year and into 2024, as the Bank of Canada signals more rate hikes to curb inflation and cool down the overheated housing market. This could put more pressure on Bay Street firms, which rely on fees from underwriting and advising on stock sales to generate revenue.

However, not all is gloomy for Bay Street. Some sectors, such as technology and health care, have shown resilience and growth potential amid the pandemic and the economic recovery. Some companies, such as Shopify and Lightspeed, have raised billions of dollars in secondary offerings on U.S. exchanges, boosting their valuations and profiles. And some investors, such as pension funds and private equity firms, are still looking for opportunities to buy undervalued or distressed assets in Canada.

The challenge for Bay Street is to adapt to the changing market conditions and find new ways to serve its clients and attract capital. The future may not be as bright as it was before the pandemic, but it is not as dark as it may seem either.


Labels:

Comments

Post a Comment