yonge city square condos price.House prices will continue to fall in 2023! With inflation still well above target, the Bank of Canada announced its key interest rate at 10:00 this morning, raising it by 100bp to 2.5 per cent.Please Visit: yonge city square condos price to Get Your VVIP Registration Today!
After announcing interest rates last month, Bank of Canada Governor Tiff Macklem said the Bank of Canada “may need to act more quickly” to reduce inflation.
“as the economy is clearly in a state of excess demand and the inflation rate is high and expanding, more businesses and consumers expect the high inflation rate to last longer,” officials said in a policy statement. “the council decided to raise interest rates in advance.”
Previously, the market generally expected to raise interest rates by 75 basis points, but it was surprising that the central bank raised interest rates by 100 basis points at once.
The unexpected move shows that there is nothing officials can do about soaring inflation but to take more aggressive action, even at the risk of a severe recession.
The CBC reported that the rate hike was the biggest since 1998, as the central bank sharply raised borrowing costs in an attempt to control runaway inflation.
The key interest rate was raised to 2.5%, the largest single increase in the central bank’s interest rate in more than 20 years.
The interest rate of the Canadian central bank will affect the interest rate at which Canadians get mortgages and credit lines from lenders.
After the central bank cut interest rates to a record low at the start of the epidemic, the central bank has raised interest rates four times since March to fight inflation.
Canada’s inflation rate has risen to its highest level in 40 years. The inflation rate in May reached 7.7% from a year earlier, the highest consumer price increase since 1983!
In an appendix to the report, the central bank admitted that it was wrong in forecasting inflation last year. It blames these errors mainly on global factors, but also refers to the cost of domestic housing.
Blindly raising interest rates will not really solve the problem of inflation, and may damage the country’s important industry, real estate, but it will not stop the central bank from announcing an increase in interest rates.
The central bank said real estate activity had slowed sharply from the “unsustainable rate of growth” it described during the outbreak. It expects housing transactions and prices to continue to fall in 2023 as interest rates rise.
Michael Carney, director of business development for HouseSigma, a housing sales platform, said the central bank’s benchmark interest rate has never exceeded 1.75% since 2016. The Bank of Canada raised interest rates by 100 basis points today, bringing Canadian mortgage stress tests into “uncharted territory”.
