RENNIE OUTLOOK 2023
INTEREST RATES
The year 2022 will be remembered for a lot of things, not the least of which was an interest-rate-hiking path pursued by the Bank of Canada that was, by some measures, unparalleled. In total there were 8 hikes in 2022, bringing the trend-setting rate to 4.25% by the end of last year, up from a mere 0.25% in March. While Canada’s central bank did boost the rate by an additional 25 basis points in January 2023, the Bank expects to abstain from additional hikes for the foreseeable future as the country’s economy digests and adjusts to the higher rate environment. Ultimately, the path of the Bank’s policy rates rests on predictions of, and assumptions about, inflation.
OUR 2023 OUTLOOK We expect the Bank of Canada to not only cease hiking its policy interest rate, but to in fact cut it by 25 basis points in the summer of 2023 as inflationary pressure abates. We expect this to be followed by two additional cuts in the fall, yielding a year-end policy rate of 3.75%.
INTEREST RATES
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Copyright © 2023 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of January 31, 2023. Data from the Greater Vancouver and Fraser Valley Boards, Statistics Canada, Zonda Urban, CMHC, & rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 10
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