Clinton Wilkins joins CityNews with Rob Snow to talk about the latest Bank Of Canada Update for January 2024. Clinton provides some insight on what no movement of interest rates means for mortgage lenders
Clinton chats with CityNews 95.7 host, Todd Veinotte about the Bank of Canada announcement. The bank held the key overnight rate and Clinton and Todd discuss how many economists thought the rate would increase today and why watching the inflation rate is key for predicting rate changes.
Bank of Canada Announcement – January 26, 2022 as heard on CityNews 95.7
Don’t feel like watching the video? Check out the transcript below.
No change to the interest rate
Todd Veinotte: [00:00:00.12] It’s time to chat with Clinton, welcome to what the Bank of Canada Clinton Wilkins, by the way, is our mortgage guru. The Bank of Canada, keeping its key interest rate steady.
Surprising some economists who thought the central bank would start hiking rates today. However, there’s a warning it’s going up. Look out March. Clinton, what do you think?
Many economists thought the rate would go up
Clinton Wilkins: [00:00:18.14] You know, while we could see an increase in March, but as you know, Todd, things can change on a dime. Last week, 90 per cent of economists were saying that there was going to be an increase today. So where are those economists today? I’m really curious to know how their day is going.
But economists are using data as an educated guess. And I think that’s the one thing that we need to remember. And with this variant, with the economy, things are moving very quickly, Todd. And you know, things are changing on a daily, weekly, monthly basis. You know, it’s great news that the Bank of Canada is maintaining the rate for those that are in a variable rate, that have any debt that’s tied on to the bank primary. You’re not going to see a change, which is good news.
“I think it’s going to go up very slowly”
Eventually, it’s going to go up. That is reality. We understand that, Todd. I don’t live in this world that I think it’s never going up. It is going to. But I think we’re going to see some slow burn and I think it’s going to go up very slowly over the next four and five years.
And, you know, this year we’re going to see some increase. That’s just reality. It cannot stay low forever. And the reason they’re going to increase is not to stop the spending, but it’s going to help stay the inflation. The inflation numbers are too high. And you know, your previous caller talked about real estate.
Inflation is key
You know, real estate is a factor. And it’s not just real estate that the bank thinks about, it’s the economy in general. I just did a livestream on Facebook this morning and I filled up my vehicle last week and it cost me $115 to fill it up. It is never even, I’ve never even spent $100 filling it up in the past since I’ve had this one.
So I think it’s something we need to remember that it’s inflation that can impact everything that we buy and, you know, all the services that we use can be impacted.
Todd Veinotte: [00:02:14.00] Clinton always great. Thank you so much, and we’ll talk again real soon.
Clinton Wilkins: [00:02:18.98] No problem, Todd. We’ll talk soon and stay safe out there.
Todd Veinotte: [00:02:23.03] All right, take care. That’s Clinton Wilkins, our mortgage guru.
If you have any questions, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.