The Bank of Canada announced a lending rate hold on April 10, keeping its overnight rate at 5%, citing expectations of future economic growth despite concerns over persistently high inflation. While there’s been some easing in Consumer Price Index and core inflation, the Bank of Canada remains watchful for sustained downwards trends.
There is growing anticipation in financial markets that this decision signals the end of stability, with expectations rising for rate cuts starting in June. Job data from March showing the highest unemployment rate in three years and inflation below target levels support this view.
Despite the hold, the Bank of Canada is committed to carefully monitoring economic indicators to ensure stability and balanced growth, with market participants eagerly awaiting further policy adjustments in response to changing economic conditions.
Here is a link to the full announcement.
Let’s discuss any further questions or how this lending rate hold affects the sale of your home, or a future purchase.