April 12 2023 - Great news! The Bank of Canada has decided to hold its benchmark interest rate at 4.5 per cent for the second consecutive decision. Despite a strong start to the Canadian economy and a tight labor market, policymakers at the central bank are confident that inflation will cool to around three per cent by the middle of this year.
According to Tiff Macklem, the governor of the Bank of Canada, Canadians can expect some relief from the rapid acceleration of prices that has been experienced in recent years.
Although food inflation has remained around 10 per cent, the Bank of Canada anticipates prices for grocery shoppers to normalize in the coming months as production and distribution costs decrease. While global inflation has been decreasing due to lower gas prices, Macklem cautioned that services inflation could potentially keep prices high.
Overall, this decision bodes well for Canadians who may benefit from stable borrowing costs and a more predictable economic environment.
Buyers are out there, and for those who are on the fence about selling or buying, now is the time! In addition, inventory is low and we are seeing quick sales and multiple offers! The rate holds are adding stability into our market place, which is great for both those considering buying and selling!
SPRING is here, get cracking!
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