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BoC Research On Mortgage Payment Lags

CANADA
  • BoC staff have published research on modelling the lags facing mortgage payment rates (see here).
  • Whilst the underlying data are a little out of date, as of 2Q23 and including a market-based rate path from Aug’23 (when 2Y OIS was about 75bps higher than it is today), it nevertheless shows that overnight interest rates would need to be cut drastically to prevent a continued climb in mortgage payment rates.

Source: Bank of Canada

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