The Bank of Canada raised its target for the overnight rate by 25 basis points to 1.75 percent this morning. In the statement accompanying the decision, the Bank noted that the Canadian economy is expected to average growth of 2 percent over the second half of 2018 before slowing to 1.9 percent next year. The renegotiation of NAFTA is expected to lower uncertainty and boost business investment and exports while households spending and the housing market are stabilizing after the implementation of the B20 mortgage stress test. Inflation is expected to remain close to 2 percent over the Bank’s two-year projection horizon.
Copyright BCREA – reprinted with permission
Bank of Canada Interest Rate Announcement
October 24, 2018
Economics, financing, interest rates, nelson real estate, nelson real estate market, statistics