this post was submitted on 25 Jan 2024
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32
Bank of Canada signals rates might have peaked. What comes next? (globalnews.ca)
submitted 2 years ago by sik0fewl@kbin.social to c/canada@lemmy.ca
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The Bank of Canada kept its benchmark interest rate steady at 5.0 per cent on Wednesday and hinted that its tightening cycle might have peaked, though inflation remains a concern.

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[–] veeesix@lemmy.ca 8 points 2 years ago (1 children)

Desjardins and TD Bank are among forecasters calling for easing to begin in the spring, while RBC, CIBC and BMO are eyeing closer to mid-year for cuts. Money markets continue to fully price in a first, 25-basis-point cut in June, according to Reuters.

CIBC chief economist Avery Shenfeld said in a note to clients Wednesday that if inflation comes in below expectations, cuts starting in April are not off the table. CIBC is calling for a total of 150 basis points of rate easing this year, with the possibility the second cut from the Bank of Canada is half a percentage point.

The central bank’s next interest rate decision comes on March 6, with its updated forecasts for inflation and the economy set for April.

[–] ASaltPepper@lemmy.one 10 points 2 years ago (1 children)

Housings still gonna be 30x median income...but I guess people will have incomes so that's nice.

[–] rekabis@lemmy.ca 3 points 2 years ago

It’s so bad in Kelowna BC that the average wage would have to jump 10× from $22/hr to $222/hr in order for the average wage earner to be able to afford the average home under the one-third rule.

And yes, all other working-class wages would have to jump commensurately, with minimum wage rising to $167.50/hr.

Or, on the flip side, housing values would have to drop by 90%.

Either way, something has to give. This can only go on so long before people just start taking a page out of 1790s France.