“We are dealing with a far weaker economy in Canada than the United States,” Gomez said. This disparity, he suggested, is another reason why the Bank of Canada is “behind the curve” when it comes to easing policy.
The interest rate cuts, while intended to provide economic relief, have raised concerns about the housing market. McHaney pointed out that despite falling interest rates, the Canadian housing market remains tepid, with rising home listings but limited demand.
Gomez echoed this sentiment, noting that while the market has shifted towards buyers, house prices remain relatively high, keeping affordability issues in focus. “It’s turned into more of a buyer’s market,” Gomez explained, but house prices are still expensive for many prospective homebuyers.
The Bank of Canada’s rate cuts are expected to continue into 2025, with further easing measures being introduced depending on how inflation and economic growth trends evolve.
The central bank’s monetary policy report, which will be released alongside its rate decision, is expected to provide new economic forecasts that will shape expectations for the months ahead.
