The Bank of Canada held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.
The next scheduled date for announcing the overnight rate target is June 7, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 12, 2023.
The Bank expresses its confidence that the rate of inflation, as measured by the Consumer Price Index (CPI), will experience a significant drop, reaching approximately 3% by mid-year, and then gradually declining further until it achieves the target of 2% by the end of 2024. The latest data reinforces the Governing Council's conviction that the inflation rate will keep declining in the coming months.
The Bank of Canada's decision to maintain the key interest rate at 4.5% this month is definitely a positive development for both buyers and sellers. This means that borrowing costs will remain steady, making it more affordable for buyers to purchase a home or other property. It also means that sellers can continue to enjoy a stable market without worrying about drastic changes in interest rates that could negatively impact the value of their property.
Additionally, this decision can encourage more buyers to enter the market and invest in real estate, as they can feel more confident in their purchasing power and ability to secure a mortgage with reasonable rates. Overall, this decision can promote a healthy and stable real estate market, benefiting both buyers and sellers alike.
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