The Bank Of Canada Hitting Pause Button On Future Rate Hikes After Most Recent Interest Rate Hike!

As expected The bank of Canada has raised its policy interest rate by 25 basis points to bring their new rate to 4.5%. My name is Ivaylo Stoyanov from the Stoyanov Group and in this video we will go over the most recent interest rate hike and what it means for your plans to buy, sell or invest.

As you know, this is the 8th consecutive interest rate hike from the bank of Canada in order to fight high inflation and the one question on everyones mind was “how long are they going to keep raising rates and how high are my payments going to get because of it”.

I can confidently say that this announcement did not only have negative news however it also hinted very strongly towards what we have all been waiting for, “are they going to continue raising rates after this?”

The bank of Canada has said that they will be hitting the pause button on future rate hikes for now while they assess the impacts of the substantial monetary policy tightening that was already undertaken.

They also mentioned that this is conditional economic developments evolving broadly in line with their outlook, meaning that we continue seeing inflation coming down which it has been for 6 consecutive months now.

With all this said, how is this going to impact your real estate decisions? Well we can definitely expect more buyers to come off the sidelines as this is what they have been waiting for however don’t expect any big movements in activity as interest rates will most likely stay where they are until the second half of this year and maybe in 2024.

Even though we are expecting buying demand to start increasing with high interest rates and tighter mortgage rules, I don’t expect buyers to flood the market in the short term.

As I mentioned in a previous video I expect 2023 to be a more flat year with a balanced market and we will most likely start seeing regular seasonalities throughout the year.

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