The latest rate announcement from the BoC was made this morning and they have decided to hold steady at 5%. This is welcomed news for most Canadians, especially those with mortgage renewals and new purchases on the horizon, but the governor of the Bank, Tiff Macklem, indicated that now is not the time for discussions about rate cuts. He also noted that inflation numbers are still elevated and there is risk that the conflict in Gaza will expand to include more regional actors, potentially reducing supply of oil to international markets, which would elevate the price of a barrel of oil and thus the cost of everything else in response. Interest rate hikes remain the Bank’s primary instrument for combatting such inflationary circumstances.
The next and final announcement for 2023 will be on December 6.
Timing your market action, either to buy or sell, is certainly impacted by the direction of these announcements. For customized, personal advice, reach out to me any time to discuss your real estate decision making.