STEVEN TSE PERSONAL REAL ESTATE CORPORATION
  • PROPERTIES
    • FEATURED LISTINGS
    • SOLDS
  • SERVICES
    • SELLERS
    • BUYERS
  • NEWS
  • CONNECT
    • MEET STEVEN
    • CONTACT
  • RESOURCES
    • TESTIMONIALS

Bank of Canada to hold rates steady to year-end, start cutting in January 2024: budget watchdog

3/2/2023

 
ISMAEL SHAKIR (REUTERS) OTTAWA — The Bank of Canada will hold its key policy rate at the current level of 4.5 per cent until the end of this year and will start cutting rates in January 2024, Canada’s independent budgetary watchdog forecast on Thursday.

The central bank has raised rates at a record pace over the past year to tame inflation that hit a four-decade high of 8.1 per cent in June.

After its last hike in January, the Bank of Canada became the first major central bank fighting global inflation to say it would likely “pause” further moves as long as prices continue to come down as it has forecast.


“We expect the Bank of Canada to maintain its ‘pause’ through to the end of this year,” Parliamentary Budget Officer (PBO) Yves Giroux said in a report. “With CPI inflation on track to return to its two per cent target, we then expect the bank to start lowering its policy rate early next year.”
Canada’s budgetary watchdog said it expects interest rates to fall to 2.5 per cent by December 2024.
While money markets still expect that the central bank will keep its benchmark rate unchanged at next week’s policy announcement, they are pricing in additional tightening later in the year.


Canada’s economy will stagnate this year as tighter monetary policy takes hold, the PBO projected.
​

“Following a stronger-than-expected performance in the second half of last year, we project the Canadian economy to effectively stagnate over the course of this year,” Giroux said.


Economic data have been mixed since the central bank signalled the pause, with a blowout jobs report in January showing continued labour market tightness, while inflation and GDP data have been more muted.


(Reporting by Ismail Shakil in Ottawa; Additional reporting by Fergal Smith; Editing by Mark Porter)

Comments are closed.

    Market Update

    Updates on Real Estate news happening in your city. 

    Archives

    January 2023
    November 2022
    October 2022
    September 2022
    August 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    February 2021
    January 2021
    November 2020
    October 2020
    August 2020
    July 2020
    May 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    September 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    Architecture
    Banking & Mortgage
    City Development
    City Events
    Home Staging
    Market Trends
    Project Presales
    Strata
    Supportive Housing
    Vancouver Heritage

  • PROPERTIES
    • FEATURED LISTINGS
    • SOLDS
  • SERVICES
    • SELLERS
    • BUYERS
  • NEWS
  • CONNECT
    • MEET STEVEN
    • CONTACT
  • RESOURCES
    • TESTIMONIALS