Susan Vollmer
  • Home
  • Listings
    • My Listings
    • Office Listings
  • Resources
  • Contact
  • Blog

Bank of Canada Interest Rate Announcement

1/9/2019

 
BCREA ECONOMICS NOW​
The Bank of Canada left its target for the overnight rate unchanged at 1.75 per cent this morning. In the statement accompanying the decision, the Bank noted that the outlook for the Canadian economy is moderating due to  falling oil prices and mandatory production cuts in Alberta and a slowdown in global demand due to US-China trade tensions. As a result, the Bank has trimmed its forecast for Canadian economic growth in 2019 from 2.1 per cent to 1.7 per cent.  Total inflation is being dragged lower by falling gasoline prices, though core inflation remains near the Bank's 2 per cent target.

​While the direction of future monetary policy remains tilted toward higher interest rates, our baseline forecast is for a single rate hike as the most likely outcome for 2019. With a housing market battered by the stress test and signs of slowing growth elsewhere in the economy, it will be difficult for the Bank to accelerate monetary tightening beyond a gradual pace.  A less hawkish Bank of Canada, along with a steep fall in Canadian bond yields, should translate to mortgage rates flattening out or even moving slightly lower in 2019.

For more information, please contact: 
Cameron Muir | Chief Economist | Direct: 604.742.2780 | Mobile: 778.229.1884 | Email: cmuir@bcrea.bc.ca
Brendon Ogmundson | Deputy Chief Economist | Direct: 604.742.2796 | Mobile: 604.505.6793 | Email: bogmundson@bcrea.bc.ca

The British Columbia Real Estate Association (BCREA) is the professional association for about 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.
Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.
To change your email address, subscribe to more BCREA publications or unsubscribe from this distribution list, click here.

Comments are closed.

    Archives

    May 2022
    March 2022
    June 2021
    November 2020
    September 2020
    June 2020
    May 2020
    February 2020
    January 2020
    December 2019
    November 2019
    September 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    March 2017

    Categories

    All

Home

LISTINGS

RESOURCES

CONTACT

BLOG

Susan Vollmer © 2022
Web Design by Tess M Sereda
  • Home
  • Listings
    • My Listings
    • Office Listings
  • Resources
  • Contact
  • Blog