No interest rate increases were included in the Bank of Canada’s opening rate announcement of the year – but they’re on their way, the central bank indicated.
With its next statement penciled in for early March, a policy rate hike at that time is all but inevitable, according to observers including Canadian Imperial Bank of Commerce (CIBC) deputy chief economist Benjamin Tal.
Not only will variable mortgage rates climb in line with that benchmark Bank of Canada rate; fixed rates have also been on the rise in recent months, signalling that the record-low-rate environment of the COVID-19 era could be coming to a close.
That could have some cooling effect on Canada’s housing market – although it’s unlikely to precipitate any kind of crisis, according to a leading industry executive. # SANDI HALPERN # SOLD # LEASED# REAL ESTATE MARKET# INTEREST RATES
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