The Loonie Hour Bank of Canada Slashes Rates Ahead of Massive Federal Budget
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Sep 19, 2025 This week features a cutting analysis of the Bank of Canada's rate decisions and their impact on the housing market. Despite the rate cuts, the hosts discuss why recovery may be slow due to fixed-rate mortgages and high listings. They dive into federal debt challenges and the implications of recent Fed actions, including construction sector strain. Plus, they highlight China's record coal consumption and the IEA's forecasting on fossil fuel demand, underscoring the ongoing reliance on traditional energy sources.
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Swiss Hotel Reservation Mistake
- Steve Saretsky booked a Zurich hotel for the wrong year and only discovered the error at check-in.
- He had to cancel and pay for a much more expensive room when rebooking that day.
BoC Cut Signals Hidden Priorities
- The Bank of Canada cut rates 25 bps despite inflation remaining sticky and no data strongly justifying the move.
- That suggests the decision served other goals beyond pure inflation targeting.
Budget Deficit And Monetary Tension
- The hosts argue a large federal deficit would be inflationary and complicate BoC policy.
- Yet the BoC avoided discussing the upcoming budget during its presser, implying coordination or reluctance.