Happy New Year!
I hope you had a wonderful holiday season and are ready to embark on a prosperous 2024. As we usher in the new year, I want to keep you informed about the latest developments in the Canadian mortgage market that may have an impact on your financial decisions.
Interest Rate Cut on the Horizon?
According to a recent article by Bloomberg, there's a possibility that the Bank of Canada may lower interest rates in the coming months. However, Governor Tiff Macklem has stressed that any rate reduction would be contingent on several months of sustained downward momentum in core inflation. This cautious approach underlines the central bank's commitment to ensuring the stability of the Canadian economy.
Shifting Focus: From How High to How Long
As we begin this new year, we witness a shift in the focus of Canadian officials. They are now more concerned about how long interest rates should remain at their current levels rather than how high they should go. This shift reflects their dedication to prudent economic management.
BANK OF CANADA
2024 INTEREST RATE ANNOUNCEMENTS
JANUARY 24 | MARCH 6 | APRIL 10 | JUNE 5 | JULY 24
SEPTEMBER 4 | OCTOBER 23 | DECEMBER 11
Comparing to the Federal Reserve
Across the border, the Federal Reserve in the United States has decided to maintain borrowing costs at their current levels. However, forecasts indicate a consensus that rate cuts may come into play in 2024. Federal Reserve Chair Jerome Powell has been vocal about policymakers' contemplation of rate adjustments as inflation gradually approaches the target goal of 2%.
What to Anticipate in 2024
As we venture into this new year, I want you to know that we will continue to keep you well-informed about any significant developments in the Canadian mortgage market and their potential impact on your financial situation.
Do not hesitate to reach out should you have any questions or require assistance with mortgage or financial planning. I'm here to provide you with personalized guidance and support.