The Bank of Canada has opted to pause its interest rate policy for the time being. Inflation has shown signs of easing and is projected to decline further following the recent removal of the carbon tax, which had been in place for the past eight years. While the Bank may hold off on further rate cuts at this stage, questions remain about whether this decision is premature given the current state of the economy.

Mortgage borrowing among younger Canadians is at a historic low, despite a considerable volume of unsold housing stock remaining on the market. This disconnect points to broader affordability challenges and underscores the need for coordinated policy responses beyond monetary measures. Addressing these issues will likely fall to the next federal government. For now, the Bank of Canada appears to be managing monetary policy with the tools available in a complex and evolving economic environment.

John Chrisanthidis, Mortgage Broker (FSCO Lic. M08001294 Mortgage Intelligence FSCO Lic. 10428)

✉️ [email protected]

☎️ 416-890-1365