The Bank of Canada is highly likely to implement another series of rate hikes following its 50-basis increase, according to economist Sherry Cooper.
Cooper warned of the implications of this week’s hike – which was the central bank’s sixth straight increase – on the housing market.
“The prime rate will now quickly rise to 5.95%, increasing the variable mortgage interest rate another 50 bps, which will likely take the qualifying rate to roughly 7.5%."
While the BoC’s latest hike was 25bps lower than Cooper initially expected, the move still “reflected the Bank’s significant downgrade to the economic outlook. Weaker growth is expected to dampen inflation pressures sufficiently to warrant [the] smaller move.”#SANDI HALPERN # REAL ESTATE # SOLD # INTEREST RATES
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