A quarter-point cut won’t dent today’s historically high borrowing costs
For those Canadians anxiously waiting for lower interest rates, good news. Rate relief may be coming this summer – perhaps as early as June or July.suggests inflation is cooling and has boosted expectations the Bank of Canada will lower rates by a quarter of a percentage point within the next two months, and perhaps by three-quarters of a percentage point by the end of the year.
After the first quarter of a percentage point cut, the prime rate in Canada – which is based on the BoC’s benchmark rate – will fall from its current 7.2 per cent to 6.95 per cent. That in turn will lead to decreases in variable-rate borrowing products, which are priced based on prime plus or minus a percentage.
Despite a sleepy start to the spring selling season , real estate boards predict buyers will reappear once rates start to fall. That would in turn push home prices higher, a correlation we’ve seen play out through past rate drops. This was largely driven by the psychological shift that occurs in a lower-rate environment; borrowers see the upward pressure on home prices and feel urgency to jump in, in turn driving up prices and competition. It’s a self-fulfilling prophecy.
Canada News Breaking News Video Canadian Breaking News Breaking News Globe And Mail Breaking News Globe And Mail Canada News Photos World News Local News National News Us News Foreign News Sports News Arts News Life News Lifestyle Canada Traffic Canada Weather Trudeau Government Federal Government Canada Sports Canada Sports News Politics Politics News Political News Political Opinion Environment Economy Technology Education Travel Canada Alberta Bc British Columbia Manitoba Ontario Quebec Nova Scotia Pei New Brunswick Newfoundland And Labrador Nunavut Northwest Territories Yukon Globe And Mail
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman’s Rubner Sees FOMO in the Market Ahead of Key Inflation DataUS stocks and bonds are facing an upside risk this week as traders keep building long positions across asset classes heading into key inflation data, according to Goldman Sachs Group Inc.
Read more »
Goldman’s Rubner Sees FOMO in the Market Ahead of Key Inflation Data(Bloomberg) -- US stocks and bonds are facing an upside risk this week as traders keep building long positions across asset classes heading into key...
Read more »
Morning Bid: Asian stocks eye best run since 2021Monday's global market moves encapsulated the 'FOMO' that seems to be fueling the ongoing risk rally - volatility, the dollar, bond yields and geopolitical...
Read more »
Pacers hope home cooking energizes push to even series with New York, force Game 7Indiana Pacers look for spark from home crowd against New York Knicks in Game 6
Read more »
Weiss Multi-Strategy Advisers’ Bonuses Spark Fight With JefferiesWeiss Multi-Strategy Advisers LLC paid $28 million in employee bonuses weeks before announcing it would be shutting down, sparking a legal fight with Jefferies Financial Group, which is owed tens of millions of dollars.
Read more »
McDonald’s to Test Bigger Burger to Spark Traffic GrowthThe Quarter Pounder is not enough. McDonald’s Corp. will test a bigger burger this year to meet diners’ appetite for more filling patties.
Read more »