8 elm street toronto.House prices may continue to fall! The Bank of Canada is scheduled to issue its latest interest rate policy announcement on Wednesday and is expected to raise benchmark interest rates for the fifth time this year. Although most economists agree that interest rates will rise, the focus of the debate is how much will interest rates rise?Please Visit: 8 elm street toronto to Get Your VVIP Registration Today!
The current discussion is that the central bank will raise interest rates for the last time to cool inflation, which is near a 40-year high. All 11 economists surveyed by the Wall Street Journal expect interest rates to rise by 75 basis points, which will bring overnight interest rates to 3.25%, 3% higher than Canada’s level at the beginning of the year.
Some experts say the pause may be necessary and there are signs of a mild recession by the end of this year or early next year, although this is also the focus of debate.
The last key rate hike was by one percentage point to 2.5% in July. The 100 basis point increase was the biggest single increase since August 1998.
With the economy clearly in excess demand, inflation stubbornly high and expanding, and more companies and consumers expecting high inflation to last longer, the board decided to raise interest rates ahead of time by raising policy interest rates by 100 basis points. Today, the Bank of Canada said in a statement on July 13.
Changes in interest rates will affect floating-rate mortgages and home equity credit lines, as well as other borrowing costs linked to lending rates.
TD had predicted that Canadian house prices would fall by 25% by next year, while home sales would plunge by 40% over the same period, and the impact of higher interest rates would be seen next year or the end of next year.