'Vicious cycle' between high interest rates and rents: expert

Canadians are grappling with high rent prices being driven up by interest rates, but experts say renters won’t see meaningful relief until significantly more housing supply is built – regardless of where rates ultimately fall.

“It's a bit of a vicious cycle as interest rates and rents are sort of aggravating each other at the moment,” Shaun Hildebrand, president of real estate data and research firm Urbanation, told BNNBloomberg.ca in an interview on Wednesday.

Hildebrand made the comments after the Bank of Canada held its key interest rate steady at five per cent for the fourth consecutive decision on Wednesday. The move was in line with unanimous expectations from economists surveyed by Bloomberg.

The central bank signaled that further rate hikes are unlikely for the time being, opening the door to rate cuts down the line.