GTA mortgage borrowers can expect continued stability in variable and HELOC costs, as December’s jobs report suggests the Bank of Canada will likely maintain its current interest rate. Statistics Canada reported a modest increase of 8,200 jobs, with the unemployment rate rising to 6.8%. While full-time employment saw a boost, part-time work declined, reflecting a mixed economic picture. Economists like Doug Porter from BMO suggest this data brings the labor market “back down to earth” after previous strong gains.
Experts believe the Bank of Canada will likely hold its overnight rate at 2.25%, a level deemed appropriate by Governor Tiff Macklem to support modest growth and keep inflation near target. While a rate hike remains a distant possibility, the current economic climate suggests borrowers will face a longer wait for potential rate relief. For a deeper dive into the analysis and expert opinions, read the full article on mpamag.com.
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