Interest rate announcement March 8 2023

The Bank of Canada's latest announcement on interest rates and monetary policy sheds light on the current state of the global and domestic economy. Despite continued slowing of global growth and the easing of inflation due to lower energy prices, the United States and Europe are seeing somewhat higher than expected growth and inflation. In China, growth is rebounding, but the impact of Russia's war in Ukraine remains a key source of upside risk.In Canada, economic growth came in flat in the fourth quarter of 2022, lower than the Bank projected, with restrictive monetary policy continuing to weigh on household spending and business investment. Despite this, the labor market remains very tight, with employment growth remaining strong, unemployment rates near historic lows, and job vacancies elevated. Wages continue to grow at 4% to 5%, while productivity has declined in recent quarters.Inflation in Canada eased to 5.9% in January, but price increases for food and shelter remain high, causing continued hardship for Canadians. With weak economic growth for the next couple of quarters, pressures in product and labor markets are expected to ease, moderating wage growth and increasing competitive pressures.The Bank of Canada's policy interest rate remains at 4½%, with quantitative tightening complementing this restrictive stance. The Governing Council will continue to assess economic developments and the impact of past interest rate increases, prepared to increase the policy rate further if needed to return inflation to the 2% target. The Bank remains committed to restoring price stability for Canadians.While the Bank's announcement may not provide immediate relief for Canadians facing hardship due to high inflation, it does provide valuable insight into the current state of the economy and the Bank's commitment to restoring price stability. As the global and domestic economic situation evolves, the Bank will continue to monitor and adjust monetary policy accordingly, with the goal of promoting long-term economic growth and stability.If you wan to known more information how this impacts Selling and Buying real estate ,Contact or Book a call 604902-4589