BoC reveals first rate decision of the trade war era
“Higher oil prices have put some upward pressure on inflation, but the bigger concern is that tariffs could put pressure on prices at the same time as they weigh on economic growth.”
He didn’t rule out a move by the Bank to bring rates lower before the end of 2026 if the inflation outlook improves.
“I think they’ll want to see how growth and inflation develop over the next few months before making their next move,” he said. “If inflation keeps easing while the economy remains weak, I think we could see a rate cut later this year.
“For buyers, that means there’s no rush based on [the] decision. If rates come down later this year, buyers could actually see some relief in borrowing costs, so it’s worth keeping an eye on where inflation and the economy go from here.”
What’s next for the housing market?
While the BoC’s latest announcement means no relief on borrowing costs for now, a new Royal Bank of Canada (RBC) report suggests the housing market is facing improving prospects in some regions – even if it’s still sluggish in others.
