Canadian banks announced they were raising their prime lending rates after the Bank of Canada surprised markets by hiking it benchmark interest rate on June 7.
Harvester Calling on Government to Allow Fish Export Out of Province
A local crab harvester wants government to address rules surrounding the exportation of goods from this province.
Hundreds of crab harvesters, plant workers, and more took to the steps of Confederation Building on Monday out of frustration with the price of snow crab, which has been set at $2.20 per pound.
One of the harvesters, Glen Winslow, says companies based here are allowed to go anywhere in Atlantic Canada, purchase product, and have it shipped into the province for processing.
Harvesters, he says, are not allowed to ship their product out. He says that rule is killing rural Newfoundland and Labrador and plant workers.
Rob Carrick: What the Bank of Canada rate hike means for investors and savers who want to park money safely
The benefit of parking cash in a high-interest savings account ETF was demonstrated this week after the latest increase in the Bank of Canada’s overnight rate.
The central bank raised its trendsetting rate by a quarter of a percentage point Wednesday. Almost immediately, the yield on HISA exchange-traded funds increased by a similar amount. For example, the gross yield on the Horizons High Interest Savings ETF CASH-T was 5.18 per cent late this week, up from 4.93 per cent late last month. CASH has a management expense ratio of 0.11 per cent, so its net yield is now 5.07 per cent.
Changes in the overnight rate do not directly influence returns from guaranteed investment certificates, but there’s an indirect effect that right now is working in favour of GIC investors. The Bank of Canada is worried about inflation – that’s why it increased the overnight rate. Inflation fears are also weighing on the bond market, where rates have been moving higher as well lately. Yields on Government of Canada bonds influence rates on GICs, which have been creeping higher lately for terms of one and two years.
As of late this week, the number of alternative banks, trust companies and credit unions offering 5 per cent for one year had grown to seven, and the number offering 5 per cent for two years was four. The best three-year rate was 4.95 per cent. GIC issuers have been reluctant to raise rates on longer terms, but this could change if bond yields keep rising.
HISA ETFs accounted for two of the top 10 sellers last month in ETF land, even though they are under review by the federal Office of the Superintendent of Financial Institutions. These funds hold their assets in accounts at big banks that pay rates of return that are superior to what’s offered to retail depositors. Regulators at OSFI are looking into what would happen to banks if investors were to pull all their money from HISA ETFs at once. OSFI may order changes that will lower returns on HISA ETFs.
As a hedge against this outcome, some ETF providers recently introduced funds holding government treasury bills. T-bill yields have been rising lately as a result of the same inflation concerns that drove the Bank of Canada rate increase this week. T-bill ETF yields would benefit if this continues.
HISAs for investors are also available in a mutual fund format. Rates on these products have been stuck in the 4.05 to 4.35 per cent range in recent months.
Indigo shakeup: Heather Reisman retiring, 4 other board members stepping down
The company says director Chika Stacy Oriuwa indicated she resigned “because of her loss of confidence in board leadership and because of mistreatment.”
In addition to Oriuwa, Indigo says Frank Clegg, Howard Grosfield and Anne Marie O’Donovan have also stepped down as directors. No explanation for their departures was given.
Indigo CEO Heather Reisman talks about creating a happier planet in her new book ‘Imagine It!’
Indigo wished the departing directors well and thanked them for their contributions.
The retailer says Reisman will retire as executive chair and from the board effective Aug. 22.
Reisman stepped down as chief executive of Indigo last year as part a transition that saw Peter Ruis, who had been the retailer’s president, promoted to chief executive.
Canadian banks raise prime rate to 6.95% after Bank of Canada hike
Big banks follow suit after surprise quarter-point hike
Royal Bank of Canada, TD Canada Trust, Canadian Imperial Bank of Commerce (CIBC), Bank of Montreal, National Bank of Canada and Bank of Nova Scotia all said they were increasing the prime rate by 25 basis points to 6.95 per cent from 6.70 per cent, effective June 8, 2023.
Desjardins Group and Equitable Bank also announced it would raise its Canadian prime rate by the same amount.
The Bank of Canada surprised markets and observers when it raised its benchmark policy rate by a quarter percentage point to 4.75 per cent earlier in the day.
The central bank has raised its rate nine times, and 4.5 percentage points, since March 2022, and the commercial banks’ prime rate has moved in lockstep from 2.7 per cent to 6.95 per cent.
Listen to Down to Business for in-depth discussions and insights into the latest in Canadian business, available wherever you get your podcasts. Check out the latest episode below:
Tests from a pair of bats confirm Hamilton’s first two rabies cases for 2023
General Motors to invest $500M in Arlington Assembly plant to build next-gen SUVS
The shortage of houses is hitting some people and areas harder than others
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Search for life on Mars accelerates as new bodies of water found below planet’s surface
Media22 hours ago
‘Wednesday’ Actor Percy Hynes White Issues Response To Social Media Posts Accusing Him Of Sex Assaults
News22 hours ago
Canada attends first-of-its-kind UFO briefing at the Pentagon
Media23 hours ago
2023 Media Layoffs: Los Angeles Times Reportedly Cutting 74 Employees
Science21 hours ago
Parker Solar Probe flies into the fast solar wind and finds its source
Health22 hours ago
Long community lab wait times continue under DynaLIFE for Calgary patients
Economy23 hours ago
Japan Economy Grows at Faster Pace as Businesses Spend More
News23 hours ago
Priority Pass and LoungeKey welcome the return of Plaza Premium Lounges as Collinson and Plaza Premium Group reach new global agreement
Tech20 hours ago
2025 Volvo EX30 aims to be its most sustainable vehicle