Bank of Canada Rate Continues to Hold Its Policy Rate at 5%


Checkout what Hi.Tech Real Estate posted in their recent newsletter about the Bank of Canada Rate update:

In a scheduled announcement on March 6, 2024, the Bank of Canada decided to maintain its target for the overnight lending rate at 5%. This was its fifth consecutive hold after two interest rate hikes last summer.

With the spring season traditionally seeing increased housing market activity, the Bank of Canada was wary of cutting rates, fearing it could exacerbate housing affordability issues by stimulating demand further.

High interest rates have already put a lot of pressure on households, contributing to a cooling economy as it seeks to align supply and demand.

However, inflation is nearing the Bank’s 2% target, with a notable impact from shelter costs, including mortgage interest and rent prices. While a rate cut could alleviate these expenses, it might also risk overheating the housing market.

Real estate professionals and potential buyers are closely watching for any rate changes, indicating that a decrease could lead to a surge in market activity and prices.

The Bank of Canada’s next scheduled interest rate announcement will be on April 10th.

Reach out to Will Yohana for more information or 519-593-3912.


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