Borrowers, beware: Bank of Canada announces interest rate hike

By Troy Ungerman (Toronto) on July 24, 2018 Posted in Financial institutions, M&A

Recently, Bank of Canada governor Stephen Poloz announced an increase in the interest rate from 1.25% to 1.5%. The increase comes as the Bank of Canada predicts a continued growth in the Canadian economy from exports and business investments. However, household spending may represent a smaller percentage of future economic growth due to the effects … Continue reading

Additional interest: M&A activity following the Bank of Canada’s interest rate increase

By Denise Gan (Toronto) on September 7, 2017 Posted in M&A

For a second time this year, the Bank of Canada (the Bank) has raised interest rates. As of September 6, 2017, the overnight lending rate is 1 per cent, up from 0.75 per cent. Two increases in a single quarter certainly bucks the trend that the Bank had been setting since 2010. Before July 12, … Continue reading

What a Bank of Canada interest rate hike means for dealmakers

By Troy Ungerman (Toronto) on July 12, 2017 Posted in M&A

On July 12, 2017, the Bank of Canada raised its overnight lending rate to 0.75 per cent from 0.5 per cent. This was the first such increase in almost 7 years, after a prolonged policy of fiscal stimulus in the wake of the economic recession. While the need for an interest rate hike in the … Continue reading