“I would wait until you actually start seeing rate hikes and if you get really nervous at this point, do it.” [lock in a fixed rate], “she said.” But if you follow the plan that I have laid out for most of my clients – overpay your variable, pay it like it’s fixed – you’re pretty much seated. “
While the Bank’s announcement showed rate hikes were on the horizon, it gave no indication of the frequency or severity of those increases, with little prospect of a dramatic bullish move in any short period of time. 2022.
Zlatkin said his intention to hike rates in mid-2022 was a smart option, with a measured and cautious approach to rate hikes next year being a smarter strategy than “quick and drastic†hikes.
“The reason I think this makes a lot of sense is that as things evolve, as the economy returns to normal, you will probably have to see gradual increases in the Bank of Canada’s overnight rate. Canada, â€she said. noted.
“That being said, if you start making these changes drastically, all at the same time, it’s going to lead to a bit of a crazy market. If you start doing it slowly over time, then that incremental change won’t do. panic people and won’t think the market or the economy is going to collapse.
