The Bank of Canada (BOC) has held their overnight lending rate at 5% this morning in its final announcement of 2024. The governor, Tiff Macklem has sighted that the previous rate hikes are having the desired effect of slowing the economy and we are on the way to reducing inflation back down towards its target rate of 2%.

Subsequently the bond markets have been reacting accordingly as of late, and we have seen them decrease substantially over the past month giving some greatly needed relief on the fixed rate front. We are now seeing insured fixed rates that are sub 5% for the first time in over 6 months.
With things finally starting to head in the right direction on the inflation front, all eyes will now be on the BOC to see when the they will start cutting rates. Many economists predict the 2nd quarter of 2024, but this will largely be economic data dependant. Stay tuned.......

The scheduled rate announcements for 2024 are as follows:

• Wed January 24th
• Wed March 6th
• Wed April 10th
• Wed June 5th
• Wed July 24th
• Wed September 4th
• Wed October 23rd
• Wed December 11th

For more information: [email protected]