Market Update: Bank of Canada Holds Rates Steady
The Bank of Canada announced that they are holding the key interest rate steady at 4.5% while they wait for the previous rate increases to filter through the economy further. After raising rates eight times from March of 2022 and February of this year, most economists had predicted this rate would hold. The inflation rate in Canada peaked at a little more than eight per cent in June 2022. As of February 2023, that number had cooled to just over five per cent. While March information is not yet released, it is due out next week, the rate is expected to have dropped further to as low as 4 per cent. The bank expects this number to drop to 3 per cent by mid 2023 and down to the target rate of 2 per cent by the end of 2024. Governor Tiff Macklem had this to say about the state of things at the moment.
"Getting inflation down to three per cent this summer will be a welcome relief for Canadians, but let me assure Canadians that we know our job is not done until we restore price stability. That's the destination — we are on our way and we will stay the course."
This rate hold is welcome news to homeowners and those searching for houses for sale in Windsor and the surrounding area. With mortgages due for renewal and new buyers in the Windsor real estate market, this rate hold should help solidify or stabilize the financial situation for some.
News content courtesy: Pete Evans, CBC News; https://www.cbc.ca/news/business/bank-of-canada-april-decision-1.6807771
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