The Bank of Canada has left its key interest rate unchanged at 2.25%, signalling that it believes the current rate is appropriate as the economy continues to recover.
There are encouraging signs. Canada's economy is beginning to regain momentum, consumer spending remains steady, and the housing market appears to be stabilizing after a slower period. Inflation has ticked higher recently, but that's largely due to higher gasoline prices related to the conflict in the Middle East. Strip out gas prices, and inflation is sitting much closer to the Bank's 2% target.
There are still uncertainties. Global conflicts, oil prices, and U.S. trade policy could all influence the economy in the months ahead. For now, though, the Bank believes staying the course is the right move while it monitors how these factors unfold.
What does this mean if you're thinking about buying or selling?
The good news is that borrowing costs remain stable, giving buyers and sellers a little more certainty when making decisions. While we're not seeing another rate cut today, we're also not seeing rates move higher.
Real estate markets tend to respond well to confidence. As economic conditions continue to improve and the market finds its footing, many buyers who have been waiting on the sidelines may feel more comfortable making a move.
As always, every situation is different. The best time to buy or sell isn't determined by a Bank of Canada announcement—it's determined by your goals and by having the right strategy.
Your Success is Our Business.
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