Interest Rate Cuts are on the Horizon

Dated: January 25 2024

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Interest Rate Cuts are on the Horizon

Interest rate cuts are on the horizon, but the Bank of Canada isn't locking in specific dates. Tiff Macklem, the Governor, emphasizes the importance of not misleading Canadians with false precision. Right now, the Bank is sticking with the current rates of 5%. According to many economists, the first cut might happen in April or June, with June 5th being a likely scenario.

CPI inflation, closing at 3.4%, was primarily driven by high shelter costs. It is expected to ease gradually, reaching around 3% in the first half of the year and hitting the 2% target by 2025.

What this Means for the Market

In the midst of these economic shifts, real estate activity is already on the rise. The Bank of Canada signalling a certain economic stability and the potential for interest rate cuts sets the stage for a busy spring. Buyer confidence is expected to increase, making it a season to watch in the real estate market.

Save the Date: March 6, 2024

Mark your calendars for the next announcement on the overnight rate target. As updates roll in, the real estate scene will take shape, offering both challenges and opportunities. Stay tuned for the latest developments shaping the market.

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