Banks playing Chicken; RBC blinks

[thirdlittlepig]

Rbc has just raised its rates !!!!!40 BASIS POINTS!!!!! just like that. The nerve of them, without even asking "Mother May I?" Maybe the banks have had it with this approach, maybe they just see some future risk in lending in Canada's real estate environment. Will be interesting to see who if anyone follows suit. Do you think mortgage payers will begin to feel uncomfortable as mortgages come up for renewal? This is how banks hold people up for ransom, which of course is what they are entitled to do. Great system, eh?

[Taipan]

Worlds changing. Dont expect the past to replicate the future.

Yesterday the RBA left interest rates on hold. 75% of the market expected them to drop.

Banks tipped to raise interest rates

Economist Stephen Koukoulas has told AM the banks might see now as a good time to claw back some of their costs for sourcing funds on global markets.

"There's at least an even chance that sometime over the next couple of weeks, the commercial banks will be looking at their cost-of-funding pressures, seeing that [they] are going up and that they will, I guess, surprise people and annoy people by just tweaking up some of their lending rates, both for mortgages and small business," he said.


Thats the same place that Canadian banks get their money and rates from.

[red_lantern]

Yes it's a sign of the times, the banks will be increasing the mortgage rates, there will be fewer buyers and prices will ultimately come down!
Hurray!!! Bubble has burst!

[eyesthebye]

RBC will retreat when no other bank blinks. I'll give them 3 weeks.

[vanpro]

RBC will retreat when no other bank blinks. I'll give them 3 weeks.

TD just "blinked" and follows RBC by terminating special 2.99% 5 yr rate early and hiking rates generally:

http://business.financialpost.com/2012/ ... als-early/

[jesse1]

TD just "blinked"

Mumblings afoot to increase that insurance cap AT ALL COSTS. Oh my I would not want to be the Finance Minister right now.