January 24th
The Bank of Canada holds Rates steady.
As most experts had predicted, the Bank of Canada announced, in a more upbeat statement, that it will maintain the overnight rate at 5%, for the fourth consecutive meeting.
There is a good chance that monetary tightening has done its job, and inflation will trend downward in the coming months. It has been a rough ride trying to get to 2% inflation, but many experts predict we are heading there probably sooner than the Bank expects. The Bank anticipates inflation to hover around 3% in the first half of 2024, gradually returning to its 2% target in 2025.
Anticipating a combination of falling inflation, weak economic growth, and a softening labour market, projections suggest that rate cuts are imminent to stimulate the economy in preparation for 2025. Analysts foresee a potential reduction in the overnight rate by June 2024. Once the Bank begins to take the rate down, it is expected that it will do so gradually, a quarter point at a time, and over a series of meetings. We could well see the overnight lending rate fall by 1% to 1.5% by the end of this year.
We have seen the Bond market starting to come down in anticipation of the reductions in the overnight Lending rate this year. This has brought the 5 year Fixed rates down from the 6.5% range into the lower to mid 5% range. Fixed rates should continue to fall as the overnight Lending rate is eased going forward this year. Prime rate remains unchanged.
We are coming out of a very tough few years for many individuals.
Bank of Canada Interest Rate Announcement Dates / 加拿大央行利率公佈日期
- Wed January 24 + 0.00%
- Wed, March 6
- Wed, April 10
- Wed June 5
- Wed, July 24
- Wed, September 4
- Wed, October 23
- Wed December 11
If you are interested in selling or purchasing a property, please contact Matt Gul, one of West Vancouver's top Realtors at 778-888-8888, for Mortgage Advice, please contact Dave Bruynesteyn at 604-315-3283 and mention that you've been referred by Matt Gul.