Hello…this is Bo Kauffmann of Remax in Winnipeg, with your real estate news for… Wednesday, March 29th, 2023…
Today is National Lemon Chiffon Cake Day, and Manatee appreciation day.
The sharp drop in headline inflation in February suggests that rates have reached their highest point and that the next move will be a cut.
In February, the annual rate of change in the consumer price index slowed to 5.2%. This was the biggest drop since February 2020. Most economists think that the drop in inflation makes it almost certain that the Bank of Canada will not change interest rates at its April 12 meeting.
Some people want at least one 25-basis-point rate cut before the end of the year. This would drop the Bank's overnight target rate from 4.50% to 4.25%.
Canada is especially vulnerable to the risk of a housing market correction when interest rates are going up because people there have more debt.
If inflation rates go down, the Bank of Canada will be able to respond by loosening monetary policy. This is especially true since Finance Minister Chrystia Freeland has said that her next budget will "exercise fiscal restraint" to help fight inflation.
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