Economists forecast rates will jump by another half percentage point next week — cooling Canada’s housing market even more

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Economists forecast rates will jump by another half percentage point next week — cooling Canada’s housing market even more. It's a pace at which rates are being hiked is the fastest in more than two decades.

The Bank of Canada is widely expected to hike interest rates again next week as part of an ongoing effort to curb consumer prices and cool Canada’s overheated housing market.

In April, the Bank of Canada increased its prime interest rate from 0.5 per cent to one per cent — the largest hike since 2000. “The expected rate hike will have a further cooling effect on both the number of real estate transactions and prices across the country,” said James Laird, co-founder of ratehub.ca.

After that, RBC forecasts another two hikes of 0.25 per cent in September and October, bringing the rate to 2.5 per cent by the end of 2022, though other economists expect rates could rise as high as three per cent by year’s end.

 

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If LPC & JT even stand a slight chance of winning in 2024/25 housing needs to come down by 50% & capital going into mfg. services etc as companies near shore/ friendshore to manage supply chains. Why is 🇨🇦 not pushing for a chip or EV plant (not just announcements)

About bloody time. Welcome to reality.

Good. But far too little, much too late.

This is the worst thing they can do. Affordability really hasn't changed.

This should be completely illegal!

Hurrrayy!!

The 'elites' are essentially psychopaths who don't care who dies as long as they are comfortable. Destroy their comfort, crush their resistance and make them beg for mercy, or suffer. Mass mobilization, general strikes and direct action. Grow a spine, win a future.

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