According to a recent forecast from RBC’s economics team, GTA variable-rate mortgage holders shouldn’t expect any rate relief until 2027. Despite Canada’s economy outperforming expectations and the Bank of Canada (BoC) holding its key rate at 2.25% in December, RBC economists anticipate the next move will be a rate hike, not a cut. This aligns with projections from other economists, who foresee the BoC holding steady through 2026. The BoC previously lowered its benchmark rate by 275 basis points to 2.25% since mid-2024. While these past cuts will aid recovery, sticky inflation above the BoC’s 2% target remains a concern. US economic forecasts also play a role, with RBC highlighting “stagflation lite” as a key theme. For GTA mortgage professionals and homebuyers, this suggests a period of stability followed by potential rate increases. Read the full article on mpamag.com for more details.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/bocs-next-move-likely-to-be-a-hike-rbc/560018
