How will the Bank of Canada's rate hold impact the housing market?
BNN Bloomberg
The Bank of Canada’s decision to hold interest rates on Wednesday could reignite the country’s housing market, experts warn, with one economist saying activity is already starting to tick higher.
The central bank elected to hold its key policy rate at five per cent on Wednesday, and in a change of tone, said its rate-setting discussions are shifting towards “how long to maintain the current restrictive stance,” and away from talk of further hikes.
Questions were raised Wednesday about whether the hold, along with more “dovish” rhetoric from the central bank, might spur an increase in housing market activity, similar to the pattern that emerged in 2023.
A rate pause early in 2023 prompted reheating in the housing market, which in turn spurred the Bank of Canada to hike rates yet again in June and July.
