News: Vancouver Real Estate Market

BCREA on Bank of Canada Interest Rate Announcement

The Bank of Canada opted to hold the Bank's target rate at 1 per cent this morning.  Market volatility over the summer and incoming data indicating very weak economic growth has prompted an abrupt change in the policy stance at the Bank of Canada. Whereas just a few short weeks ago it was widely expected that interest rates were set to rise this fall, those rate hikes have been pushed out, possibly to as far as next summer.  The major economies of the world are dangerously close to slipping into recession over the next 12-months. European sovereign debt combined with short-sighted stabilization policy and misguided austerity measures are threatening to destabilize world credit markets as interest rates in the peripheral states of the Eurozone spiked on default concerns. Meanwhile political acrimony in the United States is only further damaging an already deeply troubled economy.

 

In light of a slower global economic growth profile and heightened financial and credit market uncertainty, the Bank sees a diminished need to withdraw monetary policy stimulus. Given the current fragility of the global economy, we no longer expect the Bank of Canada to raise interest rates this year and anticipate moderate monetary tightening beyond the second quarter of 2012. 


Copyright British Columbia Real Estate Association. Reprinted with permission.

Comments:
No comments

Post Your Comment:

Blogs
Posts By Date
Categories
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.