Bank of Canada Interest Rate Announcement - June 3, 2020
Posted by Ron Neal on Thursday, June 4th, 2020 at 6:53am.
Bank of Canada Interest Rate Announcement - June 3, 2020
The Bank of Canada held its overnight rate at 0.25 percent this morning, a level it considers it's effective lower bound. In the statement accompanying the decision, the Bank noted that incoming data seems to signal that the impact of COVID-19 on the economy has peaked, though there remains significant uncertainty regarding the outlook. The Bank further commented that the Canadian economy appears to have avoided the most severe scenario the Bank had previously presented as a possible outcome of COVID-19, though it does expect a 10-20 percent decline in the level of GDP in the second quarter. However, positive growth is expected to resume in the third quarter.
Like the Bank, BCREA is projecting that the Canadian, and BC economy will start to recover in the third quarter. Positive signs of recovery are emerging in the housing market, with sales and listings activity improving from April lows. Actions by the Bank of Canada have helped ease rising once risk premiums, leading to 5-year mortgage rates falling to near record lows. Those low rates, along with building pent-up demand should lead to a healthy recovery in home sales over the next 12 months.
For more information, please contact:
Brendon Ogmundson Chief Economist 604.742.2796 bogmundson@bcrea.bc.ca |
Kellie Fong Economist 778.357.0831 kfong@bcrea.bc.ca |
BCREA is the professional association for more than 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research, and standard forms to help REALTORS® provide value for their clients.
To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.
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The Neal Estate Group is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 5,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Group have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.