Posted On Jan 24, 2024

(Written January 24, 2024)

The Bank of Canada on Wednesday announced its decision to maintain its overnight target rate at 5.00%. This move, signaling a more cautious approach to monetary policy, indicates a shift from considering further rate hikes to focusing instead on how long the current rate would be maintained. The Bank expressed concerns about persistent underlying inflation and specifically highlighted the impact of high shelter costs. Economic growth forecasts were revised slightly downward, with a slower return to the 2% inflation target expected by 2025. Bond markets are predicting possible rate cuts in the near future.

For more information, please read the article ‘Bank of Canada sends dovish signals, keeping mid-year rate cut forecasts in play’ in Canadian Mortgage Trends here.

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