![Dan Penner Senior Mortgage Broker](https://agentphotos.mortgageweb.ca/600_profile.png)
Dan Penner
📈 BoC's Rate Hikes Pave the Way for a 'Soft Landing' - Insights from Former Deputy Governor 🏦
10/5/2023
Hey there, savvy readers! ๐ We've got some fresh insights hot off the press from a CMP magazine article dated October 3, 2023. So, grab your favorite beverage and get ready to dive into the world of Canadian economics with a dash of optimism and a hint of caution! ๐จ๐ฆ๐ฐ
The Bank of Canada (BoC) has been making some waves in the financial world, and it looks like their rate hikes might just be steering the economy towards a 'soft landing.' ๐ฌ
Former BoC Deputy Governor, Paul Beaudry, thinks so too! ๐ค Over the course of March 2022 to mid-2023, the BoC cranked up the policy rate by a whopping 475 basis points. And guess what? It worked like a charm, cooling down the economy and bringing the annualized inflation rate closer to the BoC's coveted 2% target. ๐๐ผ
In an interview with BNN Bloomberg, Beaudry said, "I think it’s a plausible scenario [to get a soft landing], it’s the most likely one." But, hold on to your hats, folks – he's keeping it real, mentioning that there's still a 30% chance of things going the other way. ๐คทโ๏ธ๐๐
So, what's the big factor that'll tip the scales in the BoC's decision-making process? Sticky inflation and economic indicators, of course! Governor Tiff Macklem emphasized this in a recent speech at the Calgary Chamber of Commerce. ๐๏ธ๐
Macklem noted that while the 2% target is in sight, there's still work to be done to ensure price stability for Canadians. He added, "Overall inflationary pressures are persisting, and larger-than-normal price increases remain broad-based across the goods and services Canadians buy regularly." ๐๐๐ธ
Now, here's an interesting tidbit from former BoC governor David Dodge. He believes that while the BoC interest rate might dip slightly towards the end of 2024 or early 2025, it won't be sliding back to the pre-COVID-19 levels of sub-2%. Dodge predicts that rates will eventually stabilize around 3.5%, which is significantly higher than what we were used to before the pandemic. ๐ผ๐ฎ๐ฐ
So, there you have it, folks! The Canadian economy is on a rollercoaster ride, but it seems like the BoC's rate hikes have put it on a path toward a 'soft landing.' Keep an eye on those sticky inflation numbers, and let's see where the future takes us! ๐๐
#BoC #EconomicInsights #Inflation #CanadianEconomy #FinanceNews #SoftLanding #InterestRates #CMPMagazine #EconomicOutlook #VancouverMortgageBroker #NorthVancouverMortgageBroker #WestVancouverMortgageBroker #BurnabyMortgageBroker #CoquitlamMortgageBroker #PortMoodyMortgageBroker #NewWestminsterMortgageBroker #SurreyMortgageBroker #LangleyMortgageBroker #AbbotsfordMortgageBroker #MissionMortgageBroker #MapleRidgeMortgageBroker #PittMeadowsMortgageBroker #ChilliwackMortgageBroker #KelownaMortgageBroker #VernonMortgageBroker #VictoriaMortgageBroker #VancouverIslandMortgageBroker #BestMortgageRates #BestMortgageBroker #HomeSweetHome ๐ก๐