Experts expect a gradual decline in the key interest rates in Canada and the United States, but can we expect to reach a stable target in 2024?
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Economist Francis Josselin assessed the interest rate situation that is hurting Canadian mortgage holders.
While many will have to renew it in 2024, they are encouraged by potential cuts in key interest rates that could occur in the second half of the year.
Although the Bank of Canada may make frequent 25-point cuts in the key interest rate, when can we expect to reach the country's 2% key interest rate, which is considered a stable target?
France Press agency
For Bank of Canada Governor Tiff Macklem, residents will have to be patient, as the stable target will likely not be reached before 2025.
“We shouldn't expect mortgage interest rates to go back to where they were during the pandemic or before. If there are rate cuts at the end of 2024, it will probably be a quarter of a point, or another quarter of a point,” he said in an interview with LCN. , explaining that everything will happen “gradually.”
He adds that the inflationary context, despite its stability, still creates repercussions on the economy.
*Watch the interview in the video above*