Brokers – and Canadians in general – await the Bank of Canada rate decision, which is set to be released later today, and one Canadian bank believes it will maintain the current 0.5% benchmark.
“All told, our current tracking is for real GDP growth to run around the 2-2.5% range over the second half of this year. This growth trajectory is consistent with the profile outlined by the Bank of Canada in its July Monetary Policy Report,” TD writes in its latest Weekly Bottom Line report. “As a result, we expect the Bank of Canada will leave the overnight rate unchanged at next Wednesday’s interest rate announcement.”
It’s a decision that will likely be welcome by brokers. A decrease to the overnight benchmark – which some of have considered a possibility – could stir public worries about the state of the economy. That economic volatility, of course, would discourage many buyers from making large purchases, such as homes.
TD is the second bank to maintain the BoC would hold its rate.
“We expect the Bank of Canada to remain on hold on Wednesday with the overnight rate unchanged at 0.5%,” Derek Holt, vice president of Scotia Economics, writes in the bank’s latest economic forecast. “It will be a statement-only affair with no forecast updates or press conference.
They will come next in October.”
Meanwhile, 40 leading economists suggest there will be no change later today, according to BNN. Analysts forecast the chance of a hike at 55%, but not until 2017.
MBN
About Me
- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
No comments:
Post a Comment