Since the onset of the COVID-19 pandemic, Canadians have been taking advantage of some of the lowest mortgage interest rates in history.
On March 4, 2020, the Bank of Canada (BoC) made a 50 basis point cut to its mortgage-market influencing overnight rate as the global economy grappled with the arrival of COVID-19, the first cut since 2015. After two additional cuts, the overnight rate sank to 0.25% where it has remained since.
Now, according to the most recent overnight rate announcement from the BoC on Wednesday, Dec. 8, the current rate is still expected to hold into mid-2022. Adding into the mix, Consumer Price Index (CPI) inflation is anticipated to remain elevated into the first half of 2022.
Shaun Cathcart, Senior Economist and Director of Housing Data and Market Analysis at the Canadian Real Estate Association (CREA) sheds light on what inflation and interest rates could have in store for us in 2022.
Source: Michelle McNally - Realtor.ca - see the full article at https://www.realtor.ca/blog/what-2022-has-in-store-for-inflation-and-interest-rates/23899/1361