The Bank of Canada has made their key rate decision for April 2024. As widely expected, they announced this morning that they are maintaing their key interest rate at 5%. This makes it seven consecutive decisions to hold their key rate after increasing the rate on ten occassions between early 2022 and July 2023.
Much like their March decision, the Bank of Canada continues that iterate that while rate increases are now done, they do not feel it is time to begin lowering rates just yet. The decreases are expected in Q3 and Q4 of 2024 should the key indicators contiue to trend in the right direction.
In their prepared statement, Governor of the Bank of Canada Tiff Macklem said this. "We have three main messages this morning. First, monetary policy is working. Total consumer price index (CPI) and core inflation have eased further in recent months, and we expect inflation to continue to move closer to the 2% target this year. Second, growth in the economy looks to be picking up. We expect GDP growth to be solid this year and to strengthen further in 2025. Third, as we consider how much longer to hold the policy rate at the current level, we’re looking for evidence that the recent further easing in underlying inflation will be sustained." (Bank of Canada, 2024)
He also discussed Canadian's eagerness for easing of rates, "We don’t want to leave monetary policy this restrictive longer than we need to. But if we lower our policy interest rate too early or cut too fast, we could jeopardize the progress we’ve made bringing inflation down." (Bank of Canada, 2024)
As we move further into the spring season and into summer buyers looking for houses for sale in the Windsor real estate market can continue to purchase with confidence.
Graph Courtesy: Bank of Canada; https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
Quotes Courtesy: Bank of Canada; https://www.bankofcanada.ca/2024/04/opening-statement-2024-04-10/
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