The Bank of Canada increased the rate this week by 25 basis points to 1%
Some key points to consider from this announcement:
- Recent economic data have been stronger than expected, supporting the Bank of Canada's view that growth in Canada is becoming more broadly-based and self-sustaining
- The Canadian dollar has appreciated, also reflecting the relative strength of Canada's economy
- Future monetary policy decisions are not predetermined and will be guided by incoming economic data and financial market developments as they inform the outlook for inflation
- Particular focus will be given to the evolution of the economy's potential, and to labour market conditions
- Given elevated household indebtedness, close attention will be paid to the sensitivity of the economy to higher interest rates.
There is also speculation that there will be an additional increase prior to the end of 2017!
An analysis of the announcement and a copy of the Press Release can be found at the link below.
How does this announcement affect our local real estate market? Ask a member of Team Beauchesne for their opinion on the current real estate trends in your community!
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