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October 25, 2017 - Bank of Canada Interest Rate Announcement |
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BCREA ECONOMICS NOW
Bank of Canada Interest Rate Announcement - October 25, 2017
The
Bank of Canada announced this morning that it is maintaining its target
for the overnight rate at 1 per cent. In the press release accompanying
the decision, the Bank noted that inflation has edged up slightly and
is expected to return to its target of 2 per cent in the second half of
2018 while economic growth is forecast to slow in the final six months
of this year following a very strong first half. The Bank emphasized
that it will be cautious in making future adjustments to its policy rate
as it assesses the sensitivity of the economy to higher interest rates.
There
are several factors influencing the Bank's decision to move to the
sidelines. Recent economic data points to a slowing of growth from the
soaring heights of the first half of 2017. Moreover, inflation remains
muted and newly announced tightening of mortgage regulations will have a
significant impact on households, particularly in a rising mortgage
rate environment. We expect that the Bank will take a wait and see
approach over the next few months as the impact of its previous rate
tightening takes hold.
For more information, please contact:
Cameron Muir
- Chief Economist
Brendon Ogmundson - Economist |
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| How to Benefit from the Hot Property Market |
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| The Housing Market in Victoria has been extremely hot for the past eighteen months with both Sellers and Buyers reaping the rewards. The current inventory is lower than average and coupled with low interest rates, the current housing market will continue to remain hot.
If you are planning to sell or buy within the next three months, give me a call and I will ensure you realize the best result possible.
My Best, Arran |
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