Suncor Energy Inc T.SU

BOC Rate Hikes

[liljohnnyjoke]

Seems like in the past in a rate hike environment Canada has always raced ahead to raise rates faster and higher hikes of 0.50 ahead of the US who then holds back and when raising does it lower and slower hikes of 0.25. Leading to a Canadian recession and a US boom economy over the next couple of years.

[Chad123]

Well surprise, surprise they kept rates where they are. BoC thinks that when the pandemic cools down so will inflation. However they did state that they are on an upward path. Guess this is the polite warning. Expect the same from the FED this afternoon.  Guess they think they can control it. Going to be interesting in the next few months.

[Chad123]

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[liljohnnyjoke]

now we have to go through the whole market tanking thing again as March approaches instead of easing into it with a 0.25 hike there will likely be frequent larger 0.50 rate hikes going into the last 3/4 of the year

[Volkomm]

I think the Fed and BOC is quite aware that raising rates will crush the government and housing sector. At least in Canada housing is a significant driver of the economy. Everything is awash in debt. Even small rises will hurt significantly. Wouldn't surprise me if they indend to let inflation run hot for awhile to inflate the dollar to make the debt not as significant. 

[mrbb]

Look like fed/BOC intentions and words alone are enough to hurt the market.  They still have ~1.5 months to absorb the economic data.  I think couple of token rate hike is what the fed/BOC can afford.  Right now the scarecrow is working  

[alvarez2]

My bet is that the market charges ahead to all time highs before the big one sometime next spring.

[jx7000]

Maybe they're hoping the "Great Reset" will their job for them.