Bank of Canada maintains policy rate, continues quantitative tightening
On March 8, 2023, the Bank of Canada held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening. The Bank of Canada today held its target for the overnight rate at 4½%, with the […]
Bank of Canada Raises Key Interest Rate by 25 bps, with next announcement expected on March 8, 2023.
The Bank of Canada has recently increased its target for the overnight rate to 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. This news may cause some concerns for those involved in the real estate industry, particularly for property and real estate appraisals.
As the effects of interest rate increases continue to work through the economy, spending on consumer services and business investment are expected to slow. This may result in a decline in housing market activity, as potential buyers may be deterred by the higher borrowing costs. However, it’s important to note that the economy remains in excess demand and the Bank estimates Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October.
Despite the potential slowdown in the housing market, the Bank remains committed to restoring price stability for Canadians. Inflation is projected to come down significantly this year, which may bring some relief for those feeling the hardship of high inflation in essential household expenses. It’s important for property and real estate professionals to stay informed about these developments and consider their potential impact on their business.