Blog

Back to Blog

The Bank of Canada announced this morning that it is maintaining its overnight rate at 0.5 per cent. In the press release accompanying the decision, the Bank noted that inflation is evolving as anticipated but that a weak economy will continue to dampen growth in consumer prices. Overall, the Bank judges that risks in the economy are roughly balanced, though financial vulnerabilities have increased due to falling commodity prices.

With inflation trending close to target while the economy struggles, the Bank of Canada, whose mandate is to target 2 per cent inflation over the medium run, has to strike a fairly delicate balance. Low oil prices continue to vex the Canadian economy spurring job losses in energy producing provinces while also putting downward pressure on the exchange rate, which makes the cost of imported goods from heavy machinery to fresh produce more expensive.  We expect that weak economic growth will continue in the first quarter of 2016, but the possibility of an effective fiscal stimulus, a stronger US economy and a stabilization of oil prices points to stronger growth ahead.  The door remains open for the Bank of Canada to reduce rates once more in 2016, though our expectation is that the Bank will remain on the sidelines throughout the year. 

“Copyright British Columbia Real Estate Association. Reprinted with permission.”

For more information contact The Dion-Ivans Real Estate Team. 

Comments

No comments

Post Your Comment:

*indicates required fields.
Your Name:*
Please note, your email will not be shown publicly
Your Email (will not be published):*
Comment:*
Please type the text as it appears above:

Featured Listings

Mug Rob Mug Lee

ROB DION, BBA
Personal Real Estate Corporation
Cell: 1 (250) 575-5255
robdion@royallepage.ca

The Dion-Ivans Real Estate Team

ROYAL LaPAGE - KELOWNA

LEE IVANS, BBA
Personal Real Estate Corporation
Cell: 1 (250) 575-5455 leeivans@royallepage.ca
  • Diamond Award
  • President's Gold Award
  • Sales Achievement Award
  • Master Sales Award
The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.