Experts expect a gradual drop in the key rate in Canada and the United States, but can we expect to reach a stable target in 2024?
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Economist Francis Gosselin took stock of the interest rate situation which is hurting Canadian mortgage holders.
While many will have to renew it in 2024, they are encouraged by possible key rate cuts that could occur in the second half of the year.
Although the Bank of Canada could make recurring cuts of 25 points in the key rate, when can we expect to reach a key rate of 2% in the country, recognized as a stable target?
For the Governor of the Bank of Canada, Tiff Macklem, the population will have to be patient, since the stable target will probably not be reached before 2025.
“Mortgage interest rates should not be expected to return to what they were during or before the pandemic. If there are rate cuts that occur at the end of 2024, it would probably be a quarter of a point, another quarter of a point,” he shares, in an interview on LCN, specifying that the everything will happen “gradually”.
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He adds that the inflationary context, although it has stabilized, continues to create repercussions in the economy.
*Watch the interview in the video above*
2024-01-02 07:32:51
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