Bank of Canada Reveals April Rate Decision

Q4 2023 Economic Snapshot: A Ray of Hope

In the final quarter of 2023, the Canadian economy exhibited resilience, recording a 1% expansion on an annualized basis. This positive trajectory followed a contraction in Q3 2023, marking a noteworthy recovery.

Anticipating Interest Rate Cuts: A Closer Look

Inflation Surprises to the Downside: A Closer Look at January 2024

In last December, mortgage interest rates soared to almost 6%, marking the highest levels in over two decades. This surge has understandably raised concerns among homebuyers regarding the affordability of monthly payments.

To illustrate the contrast, let's glance back:

January 1, 2019: 3.19%

In its recent announcement, the Bank of Canada (BoC) opted to keep its benchmark interest rate at 5%. This decision aligns with the ongoing economic changes, marked by rising annual inflation, which reached 3.4% in December last year. Despite these numbers, there's a consensus among economists that the Canadian economy is slowing.

Bank of Canada's Dilemma: To Cut or Not to Cut

The recent decision by the Bank of Canada to hold its benchmark interest rate didn't surprise many, but it marked a shift in conversation. The central bank acknowledged the impact of higher interest rates on spending, signaling a change in the economic landscape.

Countdown to Rate Cuts

In the past year, the bond market has been a battleground, reacting to persistent inflation and pushing fixed-rate mortgages higher. The Bank of Canada's firm stance on the prime rate until 2024 has added to the complexity.

The Fixed vs. Variable Conundrum

Mortgage renewal decisions have always presented borrowers with a challenging choice - to go fixed or variable. However, with interest rates currently at levels rarely seen in decades, the stakes are higher than ever.

The Variable Rate Mortgage's Roller Coaster

Bank of Canada's Firm Stance Amid Economic Stall

The Bank of Canada's decision to maintain the key overnight interest rate at five percent aligns with expectations amid signs of economic slowdown and rising unemployment. The central bank emphasized its commitment to moderating spending and relieving price pressures.

Inflation Concerns Persist

In a move that was widely anticipated, the Bank of Canada has decided to maintain its benchmark interest rate at five percent. This decision marks the second consecutive time that the central bank has chosen to keep rates unchanged. It's a signal that the Bank might be shifting to the sidelines after a series of rate hikes over the past year.