South Forest Hill Residences address.The Bank of Canada stops raising interest rates or boosting the housing market. Consumer confidence in Canada rose to its highest level since the end of September, so the former Bank of Canada said it would conditionally stop raising interest rates and the market expected a rebound in property values.Please Visit: South Forest Hill Residences address to Get Your VVIP Registration Today!
The Bloomberg Nanos Canada confidence Index, a weekly measure of sentiment, climbed to 47 on Friday, up from 45.7 a week ago and 45.3 on January 20, the biggest increase since the end of November. At the end of January, the Bank of Canada said it would assess the impact of the rate hike and leave the benchmark overnight interest rate unchanged at 4.5%.
The improvement in market sentiment indicates that people expect the Canadian real estate market to recover soon. The country’s benchmark property prices are down 15 per cent from last year’s peak as rising interest rates squeeze buyers. More than 1/4 of respondents now expect house prices to rise in the next six months, the highest percentage since September, but still below the historical average.
“perception of real estate has always been a fundamental factor affecting consumer confidence,” said Nik Nanos, chief data scientist at Nanos Research. Although it has not returned to the exuberant level of the hot housing market a year ago, the weekly tracking shows the beginning of a potentially positive trajectory. ”
This growth is further evidence that Canadian consumer confidence will continue to rebound in early 2023. Consumer sentiment is still recovering at the end of last year, when the index recorded some of the most pessimistic readings since the height of the COVID-19 pandemic because of uncertainty about the economic outlook, inflation and interest rates.
Every week, Nanos Research surveys 250 Canadians about their personal finances, job security, economy and real estate prices. Fears of a recession are also waning. About 48% of respondents now expect the economy to weaken in six months, down from nearly 64% in November.
Statistics Canada will release fourth-quarter GDP data on Tuesday, and economists surveyed by the media expect an annualised growth rate of 1.6 per cent.
According to a previous survey, most Bay Street financiers believe the Bank of Canada has stopped raising interest rates and will be forced to start cutting rates before the end of the year to prevent a mild recession from turning into a severe one.
The Bank of Canada released its first quarterly survey of market participants on February 6, which found that at the end of 2022, 28 of the 30 financial institutions surveyed had a median forecast of 4.5 per cent by July 2023, and then gradually lowered to 4 per cent at the end of the year.
The consensus on economic growth in the fourth quarter of this year is likely to stop the central bank from raising interest rates. The median forecast for market participants is that Canada’s gross domestic product will fall by 0.4% in 2023, which is much more pessimistic than the central bank expects the economy to grow by 1% this year.
Central bank governor Tiff Macklem raised policy rates by a quarter of a percentage point to 4.5 per cent last month and said he was prepared to stop raising rates if inflation continued to fall from a peak of 8.1 per cent in June last year.
However, Mr McCleme insists that suspending interest rate hikes should not be understood as interest rate cuts will start soon, as inflation remains stubbornly high. However, the survey shows that most respondents believe that economic conditions will force the central bank to cut interest rates by the end of the summer.