Inflation is down - enough to bring the bank rate down and lower mortgage costs? June 5th is the next critical date

By Staff

May 21st, 2024

BURLINGTON, ON

 

Canada’s annual rate of inflation slipped to 2.7 per cent in April, from  2.9 the last time Statistics Canada reported.

It is said to be one of the last major pieces of data before the Bank of Canada’s next interest rate announcement.

 

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3 comments to Inflation is down – enough to bring the bank rate down and lower mortgage costs? June 5th is the next critical date

  • DHatch

    The answer is to reduce the overnight rate which will reduce the shelter component of the inflation rate. Not rocket science. The shelter costs have increased 6.8 year over year…they should have done this months ago.

  • Ted Gamble

    Michael, 100% agree. There will be no significant reduction in the BOC rate for the foreseeable future. If there is ahead of the Fed the Canadian dollar will sink and prices will increase on imports. I would add though that we need to reduce provincial and municipal spending as well. The planned level of increases is unsustainable.

  • Michael Hribljan

    I’m not holding my breath on this one. The BOC target, and mandate is 2%, 2.7% is 35% higher than BOC target. The BOC’s mandate, and really only mandate is inflation below 2%, not making mortgage payments less.

    Shelter is approximately 30% weight of the CPI, given the inflation in shelter costs, it would require many of the other categories to go to 0% inflation to bring inflation below 2%. The math says this is a long way off.

    The solution is simple, the federal liberals need to stop with their inflationary budgets.

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