1y ago

Bank of Canada signals rates might have peaked. What comes next?

globalnews.ca /news/10246847/bank-of-canada-rate-decision-jan-2024/

The Bank of Canada kept its benchmark interest rate steady at 5.0 per cent on Wednesday and hinted that its tightening cycle might have peaked, though inflation remains a concern.

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Desjardins and TD Bank are among forecasters calling for easing to begin in the spring, while RBC, CIBC and BMO are eyeing closer to mid-year for cuts. Money markets continue to fully price in a first, 25-basis-point cut in June, according to Reuters.
CIBC chief economist Avery Shenfeld said in a note to clients Wednesday that if inflation comes in below expectations, cuts starting in April are not off the table. CIBC is calling for a total of 150 basis points of rate easing this year, with the possibility the second cut from the Bank of Canada is half a percentage point.
The central bank’s next interest rate decision comes on March 6, with its updated forecasts for inflation and the economy set for April.
- Housings still gonna be 30x median income...but I guess people will have incomes so that's nice.
  
  It’s so bad in Kelowna BC that the average wage would have to jump 10× from $22/hr to $222/hr in order for the average wage earner to be able to afford the average home under the one-third rule.
  And yes, all other working-class wages would have to jump commensurately, with minimum wage rising to $167.50/hr.
  Or, on the flip side, housing values would have to drop by 90%.
  Either way, something has to give. This can only go on so long before people just start taking a page out of 1790s France.