Dave Larock in Monday Interest Rate Update, Mortgages and Finance, Home Buying, Toronto Real Estate News Editor's Note: Dave's Monday Morning Interest Rate Update appears on Move Smartly weekly. Check back weekly for analysis that is always ahead of the pack.
There were several noteworthy developments last week for anyone keeping an eye on Canadian mortgage rates. In today’s post, we’ll go around the horn to provide highlights from each.
The Bank of Canada’s Latest Policy Rate Announcement
- The Bank of Canada (BoC) left its overnight rate unchanged, as expected.
- The Bank reiterated its belief that the recent rise in our inflation rate, as measured by the Consumer Price Index (CPI) was, “largely due to the temporary effects of higher energy prices and exchange-rate pass through”.
- The BoC continued to emphasize downside risks across the board. On Canada’s economic momentum: “Weighing recent higher inflation readings against slightly increased risks to economic growth leaves the downside risks to the inflation outlook as important as before.” On U.S. economic momentum: “… there could be slightly less underlying momentum than previously expected.” On global economic momentum: “… recent developments give slightly greater weight to downside risks.”