Canada Global(Web News)Economists have expressed hope that after the reduction in interest rates, both construction and sales of houses will accelerate.
The Bank of Canada announced a 0.25 percent interest rate cut on Wednesday, bringing the rate to 4.75 percent. This is the first time the Bank of Canada has cut interest rates since March 2020. The interest rate was hiked several times in the last 4 years, after which it reached 5% in July 2023 and remained at 5% for the last 1 year. This is the highest rate recorded in Canadian history in more than two decades. Mark Lee, BC senior economist at the Center for Policy Alternatives, said the decision to cut interest rates is good for the housing market.
On the other hand, people say that their mortgage rates have increased many times over the past few years, so a mere 0.25% reduction did not make much of a difference to them, but in the future, people will expect rates to rise. Interest further reduced.
Canada has also become the first G-7 country to cut interest rates. Three other G-7 countries – Germany, Italy, France – are also planning interest rate cuts.
