Recent economic data suggests the Bank of Canada is likely to maintain its current interest rate policy, impacting the GTA real estate market. January’s GDP growth of just 0.1%, slightly above expectations, was driven by strength in goods-producing sectors, particularly oil and gas extraction and construction (up 1.1%), while manufacturing declined by 1.4%. This mixed performance, along with geopolitical uncertainties, points towards a cautious approach from the Bank of Canada at its April 29th decision. Economists predict rates will likely remain on hold until there are clearer signs of sustained economic improvement, potentially into 2027. The real estate sector saw a decline in existing-home transactions in Ontario and British Columbia, contributing to the first drop in real estate and rental/leasing activity in 10 months. For a deeper dive into how this impacts the mortgage market and investor confidence, visit [mpamag.com](https://www.mpamag.com/ca/mortgage-industry/industry-trends/soft-january-gdp-keeps-bank-of-canada-glued-to-the-sidelines/570373).
Source: Read the original article
