derryl

Will Canada Be Next to Raise Interest Rates?

"A few weeks ago, Canada’s big banks raised mortgage rates.

I suspect this was done at Mark Carney’s request. A brilliant move IMO. It put’s a lid on Canada’s housing bubble, while at the same time keeping rates low for the broader economy."

A few weeks ago I opined that the B of C was not even trying to slow the loonie's rise because it would be too expensive to buy enough greenbacks and futile in any event. The next day Carney jawboned the loonie down by a full cent, and he has subsequently talked it down even further.

I share your theory that Carney may have persuaded the bankers to raise mortgage rates ahead of what may be a far-future B of C rate increase. The housing heat can be doused without harming exporters. This is monetary fine tuning. Carney is proving to be a master at his trade.