This feels like good news for us Canadians, I hope... This c..
🕑 Added 2024-02-21 04:00:33 +0000 UTC
This feels like good news for us Canadians, I hope... This channel is a great source on both real estate and related finance topics. You can check out the video if this overall topic interests you, and as always I have a few highlights for you below. The fifth point is the spiciest!
1. Bank of Canada is expected to end quantitative tightening (QT) in April, as indicated by a note from RBC (Royal Bank of Canada).
2. The decision to halt QT is linked to problems in the overnight repo market, where the central bank had to inject money due to a lack of willingness among banks to lend to each other.
3. The end of QT means the Bank of Canada will resume buying government bonds, potentially impacting mortgage rates and inflation.
4. With the central bank re-entering the market to buy government bonds, there will be increased demand, leading to higher bond prices and potentially lower mortgage rates.
5. The premature end of QT suggests a shift in monetary policy driven by a lack of liquidity rather than a victory in the fight against inflation, raising concerns about the central bank's tools to control inflation in the future.
https://youtu.be/rQt_cQbvVUI?si=sGh-yM83_jGiTDRK
