Bank of Canada expects housing rebound but with “considerable uncertainty” in prices: Macklem

Bank of Canada Governor Tiff Macklem said in Montreal on Tuesday that the central bank is expecting the housing market will “rebound” this year amid expectations for interest rate cuts sometime in 2024, but warned that the outlook for home prices in the recovery comes with “considerable uncertainty.” While Macklem has maintained that the Bank of Canada expects to keep its key rate at current levels until underlying inflation shows clearer signs of easing, some forecasters and market watchers have penciled in rate cuts starting as early as April or June. Macklem also remarked that monetary policy is limited in its ability to influence the crisis of housing affordability. “We’re going to look at the whole economy… But we’re not targeting housing, we’re targeting inflation,” he added. The Bank of Canada has held its key rate steady at 5.0 per cent in four consecutive decisions following a rapid tightening cycle that saw it raise the cost of borrowing to tamp down inflation, which has cooled significantly over that period. High-interest rates make it harder for prospective homebuyers to afford a mortgage, pushing down demand in the market. For more info, please go to https://globalnews.ca/news/10276656/bank-canada-interest-rate-cuts-home-prices/ Subscribe to Global News Channel HERE: http://bit.ly/20fcXDc Like Global News on Facebook HERE: http://bit.ly/255GMJQ Follow Global News on Twitter HERE: http://bit.ly/1Toz8mt Follow Global News on Instagram HERE: https://bit.ly/2QZaZIB #GlobalNews #BankofCanada #Housing