Langstaff Gateway Condos. The Bank of Canada refuses to raise interest rates! On June 9, local time, the Bank of Canada once again rejected calls from commercial banks to raise interest rates.Please Visit: Langstaff Gateway Condos to Get Your VVIP Registration Today!
Announced that it would maintain the historically low benchmark interest rate of 0.25% until the next interest rate date.
The reason given by the Bank of Canada not to raise interest rates is that the Canadian economy has not recovered.
Perhaps in view of the great public anger caused by not raising interest rates, the Bank of Canada specifically said: “with the acceleration of vaccination and the relaxation of epidemic restrictions in Canadian provinces in the summer, the Canadian economy is expected to rebound strongly, led by consumer spending. Activity in the real estate market will slow. ”
The implication of the Bank of Canada is that Canadians are starting to go out in the summer, and the house-buying craze is likely to be replaced by the consumer craze.
But the reality is that Canada’s current inflation rate, even without counting house prices and rents, is an astonishing 3%, while the Bank of Canada aims to control inflation to less than 2%.
With real inflation already 50% higher than the target rate and refusing to raise interest rates, it is no wonder that Canada’s commercial banks have collapsed.
However, the Bank of Canada left a sentence at the end of the interest rate meeting, “it is expected to start raising interest rates sometime in the second half of 2022.”
According to this argument, there may be only a year left for the low interest rate policy left for buyers.
Maybe it’s venting discontent. Maybe I really got over it.
RBC, one of Canada’s largest banks, revised its bearish position on Canadian house prices while the central bank refused to raise interest rates. High-profile judgment:
1. The volume of housing transactions in Canada will increase by 16%, and is expected to reach 636700 units. RBC’s previous forecast was 588300.
2. Canadian house prices will rise by 13 per cent in 2021 and are expected to reach C $697400, compared with the previous forecast of 8.4 per cent in 2021.
Explaining why there was a sudden and dramatic revision of housing market forecasts, RBC said bluntly: they thought the Canadian government would actively use new policy tools to intervene in house prices, but now it is clear that the government has done nothing. The government leaves the market to set its own prices, which means that bubbles will continue to grow in accordance with inertia.