Date: August 19, 2024
Category: Blogs,Mortgage Tips & Advice
Canada’s Inflation Falls to 2.5% 📉🇨🇦 — Interest Rate Cuts Expected
Canada’s annual inflation rate dropped to 2.5% in July, aligning with forecasts and setting the stage nicely for a possible third consecutive rate cut on September 4. This decline, driven by lower prices for travel tours, passenger vehicles, and electricity, suggests that the Bank of Canada (BoC) is likely to reduce its overnight rate by another 25 basis points next month, with more cuts likely through the end of the year. 📅
While inflation is cooling, shelter costs remain a significant contributor to overall price increases. Rent and mortgage payments are still rising, though shelter price growth slowed to 5.7% from 6.2% in June 🏠💸.
With inflation consistently below 3% since January, the BoC is expected to prioritize economic growth by continuing its easing cycle into next year. RBC economists have even hinted that if economic conditions worsen, a more aggressive 50 basis point cut could be on the table in September 💼📉.
This is welcome news for those of you in variable or adjustable-rate products as we head toward the September announcement 📅💡. Next week, we’ll dive into the topic of variable rate renewals and explore why they could be a smart strategy in today’s market. Stay tuned! 👀✨
As always, I invite you to connect and review your options 📞.
Talk soon,
Ana
Mortgages can be complicated; we are here to help you make “cents” of it.
We focus on Mortgage Solutions, Period!
To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca
