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Analyzing the Bank of Canada Meeting: Insights and Reflections

Today’s Bank of Canada meeting brought forth significant insights that are likely to resonate within the market for some time. While the full impact of the announcement may take a while to digest, it's essential to dissect the key points discussed and their implications.

The Bank of Canada highlighted weaker growth projections for the US and Europe, coupled with an easing of inflation within our borders. One of the focal points of concern remains house prices, signalling potential challenges ahead. Despite these concerns, the acknowledgment of progress by the Bank offers a glimmer of optimism.

February showcased robust activity in the housing market, underscoring its resilience. However, a perplexing aspect arises when considering the inclusion of mortgage debt servicing costs in inflation calculations. Such a practice seems counterproductive, especially when rate hikes significantly inflate household expenses.

In light of these considerations, it's pertinent to offer suggestions to the Bank of Canada and the Canadian government. Rather than escalating borrowing costs and burdening Canadians, prioritizing the construction of additional housing could alleviate pressure on the market. Proactivity is key; waiting for signs to turn overtly negative before acting is imprudent. Anticipation and preemptive measures are imperative for navigating economic fluctuations effectively.

The meeting outcome didn't come as a surprise, given the current strength of the housing market. In a different economic landscape, a downturn might have prompted quicker action to stimulate and bolster the economy. While everyday Canadians closely monitor market activities, the federal government tends to adopt a more cautious approach.

For those interested in delving deeper into the Bank of Canada's upcoming events and meetings, the complete list can be found here. The remaining meetings for 2024 include:

  • Wednesday, April 10, 2024 (next BoC announcement)

  • Wednesday, June 5, 2024

  • Wednesday, July 24, 2024

  • Wednesday, September 4, 2024

  • Wednesday, October 23, 2024

  • Wednesday, December 11, 2024

While today's meeting offered valuable insights, the path forward requires a delicate balance of proactive policymaking and prudent economic management. Only through foresight and concerted efforts can we navigate the complexities of the current economic landscape effectively.

Reminder to my clients out there what this means to you. If you are in a mortgage presently that is fixed - no change to you as you are fixed for your term. If you are pre-approved for a rate hold - no impact. If you are currently in a variable no change to your mortgage as no change to the rate. If you are an active buyer looking to get into the market this no news could bring more buyers to the table which could impact your ability to be successful in your next purchase. Why? No change will allow buyers to become more comfortable and confident in their situation when we see a cut we may see even more buyer confidence grow. For now, we will continue to wait to see what will happen on my birthday in June the next for the next announcement. How fitting to celebrate my birth with a BOC meeting :P

As always DM me any questions or proactive birthday wishes you might have :P


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