Westline condos by centrecourt. The housing market may bottom out and rebound. The Bank of Canada issued an interest rate resolution and announced that it would not raise interest rates for the time being. For the fifth time since October 2018, the Bank of Canada has kept interest rates at 1.75%.Please Visit: Westline condos by centrecourt to Get Your VVIP Registration Today!
As the Bank of Canada has maintained interest rates at 1.75% over the past six months, the Canadian housing market has picked up significantly. The volume of housing transactions in April was 3.6% higher than in March and 4.19% higher than the same period last year. At present, the average house price across the country is C $495000, up 0.3 per cent from the previous month. While this rise cannot be said to be a complete recovery in the housing market, it sends a clear signal that the Canadian housing market has hit bottom. The policy of not raising interest rates announced this time is still positive for the housing market, and house prices and trading volume will continue to rise.
From 2019 to the present, the Canadian economy is still in a tense situation. Despite higher-than-expected job growth in the first quarter and a rise in the stock market balanced with a slowdown in the housing market, the Bank of Canada is deadlocked due to huge fluctuations in the global economic and political situation and a falling index of business confidence. the best thing to do now is to wait and see.
The central bank expects the Canadian economy to pick up in the second half of the year. However, due to the slowdown in economic growth, the central bank should still maintain a looser interest rate policy to ensure that there is enough room to adjust monetary policy. If the Canadian economy does not improve in the second half of the year, the central bank is likely to cut interest rates to stimulate the economy.
Some experts predict that the Bank of Canada will not rule out the possibility of raising interest rates before the end of 2020. Although the Canadian economy faces tail risks and the labor market is still tight, the Bank of Canada’s interest rates are rising at a slower rate than the actual GDP growth rate. Moreover, Canadian retail sales figures released recently were higher than expected, and oil prices remained high due to geopolitical tensions. Combined with the above factors, the Canadian economy will not enter a recession in the near future. And when global trade uncertainty abates, the Canadian economy may grow steadily. So it is possible for the central bank to restart the policy of raising interest rates.