The Bank of Canada kept its benchmark interest rate steady at 5.0 per cent on Wednesday and hinted that its tightening cycle might have peaked, though inflation remains a concern.
Desjardins and TD Bank are among forecasters calling for easing to begin in the spring, while RBC, CIBC and BMO are eyeing closer to mid-year for cuts. Money markets continue to fully price in a first, 25-basis-point cut in June, according to Reuters.
CIBC chief economist Avery Shenfeld said in a note to clients Wednesday that if inflation comes in below expectations, cuts starting in April are not off the table. CIBC is calling for a total of 150 basis points of rate easing this year, with the possibility the second cut from the Bank of Canada is half a percentage point.
The central bank’s next interest rate decision comes on March 6, with its updated forecasts for inflation and the economy set for April.
Housings still gonna be 30x median income…but I guess people will have incomes so that’s nice.
It’s so bad in Kelowna BC that the average wage would have to jump 10× from $22/hr to $222/hr in order for the average wage earner to be able to afford the average home under the one-third rule.
And yes, all other working-class wages would have to jump commensurately, with minimum wage rising to $167.50/hr.
Or, on the flip side, housing values would have to drop by 90%.
Either way, something has to give. This can only go on so long before people just start taking a page out of 1790s France.
