Number of variable-rate mortgage holders hitting trigger rate will climb to 65 per cent next year, BOC warns

Number of variable-rate mortgage holders hitting trigger rate will climb to 65 per cent next year, BOC warns

Homes on Sherman Brock Circle in Newmarket, Ont. on Mar 30, 2021.Fred Lum/the Globe and Mail Canada’s financial system should be able to weather a period of heightened stress, but many recent home buyers could experience a “painful” squeeze as interest rates continue to rise, the Bank of Canada’s second-in-command said Tuesday. In a speech … Read more

Ontario Teachers’ Pension Plan faces a hit on investment in crypto trading platform FTX

Ontario Teachers’ Pension Plan faces a hit on investment in crypto trading platform FTX

A big cryptocurrency investment by the Ontario Teachers’ Pension Plan is in jeopardy amid the latest market turmoil for the sector. Teachers, which is Canada’s third-largest pension fund, invested in trading platform FTX Ltd. a year ago at an announced US$25-billion valuation. Teachers watched Tuesday as FTX sold itself to rival Binance Holdings Ltd. after … Read more

Are Canadians worse off financially now than in the 1980s?

Are Canadians worse off financially now than in the 1980s?

For many Canadians old enough to remember, the current bout of runaway consumer price increases and escalating borrowing costs feels like a pared-back version of the 1980s. That was the era when the country’s annual inflation rate shot past 12 per cent a few times, and when mortgage rates briefly rose past 20 per cent. … Read more

Business groups call for government action on credit-card swipe fees

Business groups call for government action on credit-card swipe fees

Federal lobbying records show major credit-card companies including Visa and Mastercard have registered to talk to the government about its plans to lower credit-card interchange fees.John Raoux/The Associated Press Business groups are calling for action on credit-card swipe fees, saying the federal government has dragged its feet on promises to lower them. The Liberals promised … Read more

Rate hikes will continue despite fears of a recession, Bank of Canada Governor says

Rate hikes will continue despite fears of a recession, Bank of Canada Governor says

Bank of Canada governor Tiff Macklem speaks at a press conference in Ottawa on Thursday, June 9, 2022.PATRICK DOYLE/The Canadian Press Bank of Canada Governor Tiff Macklem says that the path to avoiding a recession in Canada is “narrowing,” but that the central bank intends to keep raising interest rates even as the economy slows … Read more

IMF warns of possible recession in Canada, urges fiscal caution

IMF warns of possible recession in Canada, urges fiscal caution

People shop for produce and seafood at the Granville Island Market in Vancouver on July 20, 2022.DARRYL DYCK/The Canadian Press The International Monetary Fund said it expects “substantial further cooling” of the Canadian economy, and advised the federal and provincial governments to refrain from spending windfall revenues as the country teeters on the edge of … Read more

HSBC looks to sell Canadian operations that could fetch upwards of $10-billion

HSBC looks to sell Canadian operations that could fetch upwards of -billion

HSBC has put its Canadian business up for sale as part of a strategic review, exploring a possible deal that could fetch upwards of $10-billion as the British-based bank comes under pressure from its largest shareholder to boost its performance. “We are currently reviewing our strategic options with respect to our wholly owned subsidiary in … Read more

The warning signs: Eight charts to watch as Canada flirts with recession

The warning signs: Eight charts to watch as Canada flirts with recession

On several fronts, things are getting worse for Canada’s economy. Growth is petering out. The labor market is shedding jobs. And inflation is far too high. In turn, a growing number of domestic banks are projecting Canada will slip into recession by next year. The mood soured on Wednesday as the US Federal Reserve projected … Read more

Interest rate hike to ‘intensify’ Canada’s housing market downturn

Interest rate hike to ‘intensify’ Canada’s housing market downturn

Homes for sale in Ajax, Ont., on Sept 7. In the Toronto region, the home price index declined nearly 16 per cent from March to August, with some of the city’s suburbs losing more than 20 per cent.Fred Lum/The Globe and Mail Canada’s real estate slump is about to deepen, as the rising cost of … Read more

RBC profit misses forecasts, challenging economic outlook prompts loan-loss buffer

RBC profit misses forecasts, challenging economic outlook prompts loan-loss buffer

Royal Bank of Canada’s third-quarter profit fell 17 per cent as the bank earmarked provisions against possible loan defaults, adopting a more cautious stance against a challenging economic outlook. RBC RY-T earned $3.58-billion, or $2.51 per share, in the three months that ended July 31. That compared with $4.3-billion, or $2.97 per share, in the … Read more