Bank Interest Rate cut

After last month's surprise interest rate cut by the Bank of Canada, which was a stimulus measure to offset the effects of inflation and falling oil prices, analysts have been expecting another 25 basis point cut in the overnight interest rate to 0.5 per cent later this year. However, Governor Stephen Poloz's comment this week that oil prices have stabilized and that the previous rate cut was an appropriate level of "insurance" seems to have diminished the likelihood of that happening.

Also, it was just announced that the Bank of Canada will be holding interest rates next week pending results on how last month's surprise interest rate cut affected the economy.
How might this affect the housing sector? If the Bank of Canada decreases the overnight interest rate, the banks are likely to follow suit with mortgage rates, thereby making housing more affordable to consumers.
If you are currently house hunting or contemplating if this is the right time to purchase a home, speak to a knowledgeable and experienced Century 21 King's Quay representative to get some valuable insight today!

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David Cheung

David Cheung

Broker/Owner
CENTURY 21 King's Quay Real Estate Inc., Brokerage*
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