The Bank of Canada (BoC) has implemented a 50-basis-point interest rate cut. This is in responds to a weakening labor market and a 5-year bond yield drop to 2.8%. With unemployment at 6.8%—its highest since 2017 (excluding pandemic years)—the move aims to stimulate the economy.
However, inflationary pressures, including the ‘GST holiday,’ higher retail spending, and rising producer prices, complicate the outlook. While lower bond yields suggest relief for fixed mortgage rates, volatility leaves homeowners and buyers navigating uncertainty.
In this video, Lyndsay Malchuk and Michael Succurro give clarity, insights and how Canadians are effected.
For more on the impact of this cut and strategies to adapt, watch my latest video with Michael Succurro. We dive into past BoC interest rate cuts, REITs vs. individual real estate, the 30-year amortization plan, the U.S Election and more on our video podcast Contributors Corner.
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