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The Bank of Canada in Ottawa. (Video screengrab from BankofCanada.ca)
News

Bank of Canada interest rate cut to give some borrowers relief

Effects on financial markets likely to be muted says FCC economist

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The Bank of Canada trimmed its key policy rate on Wednesday to 4.75 per cent from a 23-year high of five per cent. Inflation is now running at 2.7 per cent, above the central bank's two per cent target, but down from a high of 8.1 per cent in June 2022, Reuters reported.
(Dave Bedard photo)
Markets

FCC predicts drop in farm cash receipts for 2024

Interest rates, inputs costs may come down but farmers urged to sharpen their pencils

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FCC's top economist is urging farmers to find any way they can to save money, as the ag lender projects a 4.8 per cent decline in farm cash receipts in 2024 on the heels of lower commodity prices.
(Dave Bedard photo)

FCC’s top economic charts to monitor in 2024

Downward trends for cattle, swine herds; positive bent to feed, fertilizer affordability

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As we start the new year amid elevated inflation and major headwinds facing the economy, here are our top charts to help make sense of the economic environment for farm operations, agribusinesses and food processors.
“The consensus among the big banks is that we’re very close to peaking.” – Krishen Rangasamy.
News

Cost of borrowed money continues to rise on farms

The peak is coming, but Canadians could yet see another rate hike tomorrow

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After the hustle of the 2023 harvest season settles, a lot of Ontario farmers will examine their business’s financial numbers and be surprised at the impact of rising interest rates, says Shawn Brenn, chair of the Ontario Fruit and Vegetable Growers Association. Despite early 2023 predictions that the Bank of Canada would curtail its two-year-long […] Read more
The reputation of the Bank of Canada will be undermined if the public believes that it’s pounding away with a hammer that is not needed and causing much hardship in the process.
News

Opinion: Are interest rates the right tool to fight inflation?

The Bank of Canada’s ‘resolute’ fight against inflation could threaten its credibility

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The Bank of Canada “resolutely” declared it will fight inflation by raising interest rates. To demonstrate its unwavering commitment to reach its two per cent inflation target, the eighth consecutive interest rate hike on Jan. 25 brings the policy rate to 4.5 per cent. The bank’s logic is this: when demand outpaces what the economy […] Read more
The Bank of Canada continues to raise interest rates in an effort to halt inflation.
News

Understanding risk exposure key to managing rising interest rates

The Bank of Canada is signalling that more rate hikes are coming

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Glacier FarmMedia – Farmers need to thoroughly understand their risk exposure as they view the Bank of Canada’s latest interest rate hike, says Farm Credit Canada (FCC) economist J.P. Gervais. The Bank of Canada on Sept. 7 announced a 75-basis-point increase in its key rate, bringing it to 3.25 per cent. It followed a 100-basis-point increase […] Read more
Central banks such as the Bank of Canada have clearly indicated that they intend to keep rates lower for longer, but some say assuming long-term rates will stay low isn’t necessarily safe.
News

Low interest rates present producers with opportunities

Central banks have indicated that they expect to keep rates low for a while

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Glacier FarmMedia – It’s a nice time to be carrying debt — if your business is flourishing. Not only are interest rates low, but lenders are looking for borrowers who can pay their bills. That puts farmers in the driver’s seat. Why it matters: Reworking debt when interest rates are low can reduce borrowing costs […] Read more

Cyber-Savvy Farmer

Glacier Farmmedia Podcast