On September 6, The Bank of Canada decided not to raise rates.

We sat down to discuss the announcement, what to expect, and how it impacts you.

🏦 Bank of Canada holds overnight rate at 5%

Economists predicted a 10% chance of rate going up after GDP report. There is a possibility that we see rate hikes in the future.

GDP contraction may lead to rate cuts, good news for Canadian borrowers 💡

The labor market and the economy need to contract for rate cuts to happen.

The Bank of Canada report may be confusing, mentioning both decreased and increased inflation.

Is There Potential for further rate hikes 📈

The Bank of Canada aims to keep inflation between 2% to 3%.

Bank of Canada's decision does not directly impact fixed rates.

Rate holds for pre-approved home buyers may expire soon, potentially leading to higher interest rates.

The current impact is on variable mortgages and lines of credit, which are unaffected.

In the past year and a half, there have been 10 rate hikes and only 3 meetings without rate increases. Rate holds that were locked in at lower rates several months ago are starting to expire, resulting in higher rates.

Home buyers need to be aware of their dates, rates, and how it will affect their qualification and overall cost.

Expectations for higher inflation and uncertain impact of interest rate hikes.

Pre-approvals that are expiring should be addressed. Experts believe a higher interest rate may not significantly impact inflation yet, but it remains uncertain.

Monitor closely for any potential changes in interest rates.

The hope is that fixed rates will drop based on the impact from the Bank of Canada.

The Bank of Canada has been consistently wrong in their outlook on rates over the past two years. It's good news, but caution is advised as things could change. Buyer sentiment and market timing are factors to consider when determining the right time to jump in.

Rates and house prices are inversely related. ⏪

As rates go up, house values come down.

As rates go down, house values go up.

💬 discussion on the Bank of Canada update

The discussion was aggressive and lasted for 18 months. The feedback received will impact future actions and market monitoring.