If you would like to sell and/or buy a property in 2024, I am certain you are keeping an eye out for any decisions regarding the interest rate, as it is an important factor when purchasing and even selling a home.
This is why we'd like to share with you 4 key factors that influence the decisions regarding interest rates and some general reasons as to why the Bank of Canada could consider lowering interest rates in 2024. Let's get started!
First, should Canada's economy experience challenges or a slowdown, the Bank of Canada could reduce interest rates to stimulate economic activity and encourage spending and investment.
Two, if the inflation rate remains persistently below the bank's target, they could consider cutting rates to push inflation towards the target. This is an important indicator, but not precisely the situation that we are currently experiencing.
Three, if the housing market experiences challenges or consumer debt becomes a concern, the central bank could consider adjusting interest rates to balance financial stability.
And four, The Bank of Canada also considers employment goals when making interest rate decisions. If the labor market faces significant challenges, they could reduce rates to stimulate job creation and support economic stability.
It is important to note that the Bank of Canada's interest rate decisions are complex and based on a variety of factors. Final decisions will depend on real-time assessment of the economy and market conditions.
The announcement dates regarding the BOC's interest rates for 2024 are as follows:
- Wednesday, January 24th
- Wednesday, March 6th
- Wednesday, April 10th
- Wednesday, June 5th
- Wednesday, September 4th
- Wednesday, October 23rd
- Wednesday, December 11th
If you have questions about how this could affect your real estate decisions, don't hesitate to get in contact with our team!