In an interview Wednesday evening in the “It matters” segment of the Noovo Info 22 with Michel Bherer, Mr. Bergeron pointed out that between the moment when the Bank of Canada decrees an increase in the key rate and the moment when we feel the real impact in the economy, several quarters can pass.
“For households with mortgages, there will still be difficult months, if not years. There are 2.2 million households who will have to renew their mortgage next year and in 2025,” specifies Maxime Bergeron.
As an example, he indicates that a family who signed a $500,000 mortgage at 2% and renews it at 5.5% will have to pay $1,000 more per month.
“There are 2 million families who will have to experience this shock within the next two years. We didn’t leave the inn,” he believes.
Increases or decreases in 2024?
Should Quebecers expect increases in the key rate in 2024? This is the big question according to Maxime Bergeron, who affirms that most economists believe that there will be no increases, but that at the same time the Bank of Canada leaves itself “room for maneuver.”
“If the control of inflation does not remain in place, if there is an overheating of the economy again, the Bank of Canada could say ‘be careful, we could raise key rates.’ Most economists expect it to remain stable for the coming months, we will see for 2024,” explains Mr. Bergeron.
On the other hand, should we believe that there could be reductions in the key rate in 2024?
“Several economists say early or mid 2024. We hear a lot about the month of April 2024. If the trend of controlling the current economy continues, we could start to see declines from next April,” believes Maxime Bergeron.
See the full intervention by Maxime Bergeron, columnist at La Presse, in the video above.
2023-12-07 12:03:52
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