[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”2.75rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”3.2rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”1px||1px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||10px|||” global_colors_info=”{}”]<\/p>\n
Experts suggest the Bank of Canada\u2019s key interest rate may have peaked as it reaches its highest level since November 2007.\u00a0\u00a0<\/span><\/p>\n<\/div>\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n [\/et_pb_text][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.18rem” custom_margin=”||5px|||” global_colors_info=”{}”]<\/p>\n By Josh Sherman\u00a0<\/span>| 3 minute read<\/p>\n [\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”||32px|||” global_colors_info=”{}”][\/et_pb_post_title][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”1.13rem” text_line_height=”1.75rem” custom_margin=”||2px|||” locked=”off” global_colors_info=”{}”]<\/p>\n <\/p>\n<\/div>\n<\/div>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n The Bank of Canada\u2019s latest rate hike was no surprise.<\/span><\/p>\n <\/p>\n Experts widely anticipated the BoC would increase its key interest rate \u2014 which influences mortgage and other lending rates \u2014 on January 25, and that\u2019s exactly what the central bank did (by 25 basis points).\u00a0<\/span><\/p>\n <\/p>\n But the move raises a question: now what?<\/span><\/p>\n \u00a0<\/span><\/p>\n Since March 2022, the central bank has embarked on eight consecutive hikes. That\u2019s yanked the key interest rate from an all-time low of 0.25% during the pandemic to 4.5% \u2014 where it stood around the start of the Great Recession more than a decade ago. <\/span> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ custom_padding=”32px||32px||true|false” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” custom_padding=”14px|||||”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n \u201cOur view has been that they are likely to hold at this stage,\u201d Bryan Yu,\u00a0 chief economist for Central 1, tells Wahi.<\/span><\/p>\n \u00a0<\/span><\/p>\n Central 1 forecasts the key interest rate will stay put at 4.5% for the rest of the year before the Bank of Canada starts cutting it in 2024.\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n \u201cI think that they (the Bank of Canada) are leaning towards really holding [rates] as they see the effects impacting the economy from the previous rate hikes,\u201d he continues.\u00a0<\/span><\/p>\n <\/p>\n Yu isn\u2019t alone.\u00a0<\/span><\/p>\n <\/p>\n \u201cWe anticipate the Bank of Canada to remain on hold for the foreseeable future,\u201d writes Randall Bartlett, senior director of Canadian economics at Desjardins, in a <\/span>recent report<\/span><\/a>.\u00a0<\/span><\/p>\n <\/p>\n Bartlett agrees that when the BoC does eventually make another move, it\u2019ll be a rate cut \u2014 and it could come before the year\u2019s end. He suggests a recession will trigger the BoC\u2019s about-face on rates.<\/span><\/p>\n <\/p>\n Economists generally predict <\/span>higher interest rates will trigger a short technical recession<\/span><\/a>, which is defined as two quarters of shrinking <\/span>gross domestic product<\/span><\/a>, this year.<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#f0faf4″ min_height=”334.8px” custom_padding=”27px||0px|||” global_module=”849″ saved_tabs=”all” locked=”off” global_colors_info=”{}”][et_pb_row custom_padding_last_edited=”on|phone” _builder_version=”4.18.0″ _module_preset=”default” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|phone” custom_padding=”49px||61px||false|false” custom_padding_tablet=”” custom_padding_phone=”” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.2rem” custom_margin=”||25px|||” custom_margin_tablet=”” custom_margin_phone=”|5px||5px|false|true” custom_margin_last_edited=”on|phone” custom_padding=”||0px||false|false” header_2_font_size_tablet=”2.63rem” header_2_font_size_phone=”2rem” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”2.5rem” header_2_line_height_last_edited=”on|desktop” locked=”off” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_divider show_divider=”off” _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||0px|||” locked=”off” global_colors_info=”{}”][\/et_pb_divider][et_pb_text admin_label=”Text” _builder_version=”4.18.0″ _module_preset=”default” text_text_color=”#e8db3a” text_font_size=”20px” text_orientation=”center” min_height=”35.8px” custom_margin=”-24px||32px||false|false” custom_padding=”||||false|false” global_colors_info=”{}”]<\/p>\n Join Wahi today and find out how easy it is to get real estate in the GTA<\/a>.<\/span><\/p>\n [\/et_pb_text][et_pb_divider show_divider=”off” disabled_on=”off|off|off” admin_label=”Divider” _builder_version=”4.18.0″ _module_preset=”default” height=”5px” height_tablet=”” height_phone=”1px” height_last_edited=”on|phone” custom_padding=”||0px|||” locked=”off” global_colors_info=”{}”] [\/et_pb_divider][wahi_wahiButton url=”\/ca\/en\/real-estate\/sign-up” button_font_color=”#000000″ button_color=”#EB7161″ circle_color=”#000000″ border_color=”RGBA(255,255,255,0)” focus_color=”#000000″ is_white_hover_text=”on” _builder_version=”4.18.0″ _module_preset=”default” locked=”off” global_colors_info=”{}”]<\/p>\n GET STARTED<\/p>\n [\/wahi_wahiButton][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” custom_padding=”||4px|||”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” custom_padding=”||0px|||”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n The central bank is singing a different tune lately.\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n As recently as October, the <\/span>BoC announced<\/span><\/a> that \u201cthe policy interest rate will need to rise further.\u201d\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n But, on Wednesday, <\/span>policymakers sent another message<\/span><\/a>: <\/span>If the economy performs in line with the BoC\u2019s expectations as per its <\/span>Monetary Policy Report outlook<\/a>, the bank\u2019s governing council \u201cexpects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases.\u201d\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Inflation is forecast to sink to 3% this year before reaching the central bank\u2019s 2% target in 2024, according to the <\/span>January MPR<\/span><\/a>.<\/span><\/p>\n \u00a0<\/span><\/p>\n The bank\u2019s shift in language didn\u2019t go unnoticed. As Bartlett of Desjardins puts it: \u201cThe Governing Council\u2026watered down its hawkish language.\u201d<\/span><\/p>\n \u00a0<\/span><\/p>\n However, he adds, the bank hasn\u2019t written out the possibility of a future hike.\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u201cGoverning Council is prepared to increase the policy rate further if needed to return inflation to the 2% target,\u201d the BoC\u2019s January rate announcement concludes.<\/span><\/p>\n \u00a0<\/span><\/p>\n The central bank\u2019s second of eight scheduled rate announcements for this year takes place on March 8.<\/span><\/p>\n <\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span>\u00a0<\/p>\n Leading up to the January 25 policy move, <\/span>experts told Wahi<\/span><\/a> that the Bank of Canada had been taking the right approach by rapidly increasing the overnight rate. <\/span> \u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”48px||48px||true|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Josh Sherman” image=”https:\/\/wahi.com\/wp-content\/uploads\/2022\/11\/Screen-Shot-2022-11-02-at-7.46.57-PM.png” icon_placement=”left” _builder_version=”4.18.0″ _module_preset=”default” header_font_size=”24px” header_line_height=”1.2em” body_text_color=”#686E6E” body_font_size=”18px” body_line_height=”1.2em” width=”550px” max_width=”550px” module_alignment=”left” custom_padding=”2px|||||” custom_css_blurb_image=”width:64px;” global_colors_info=”{}”]<\/p>\n Wahi Writer<\/p>\n [\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||49px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing module_class=”wahi_socialsharing_2″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”100%” max_width=”100%” custom_padding=”0px||0px||true|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_divider show_divider=”off” admin_label=”Divider” _builder_version=”4.18.0″ _module_preset=”default” background_color=”#f0faf4″ height=”40px” locked=”off” global_colors_info=”{}”] [\/et_pb_divider][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#ffffff” custom_padding=”||3px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||3px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_font_size=”42px” header_2_line_height=”1.3em” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_blog_extras posts_number=”3″ include_categories=”23,21,22″ blog_layout=”masonry” meta_date=”M j” excerpt_length=”0″ show_more=”off” show_author=”off” category_color=”#686E6E” show_comments=”off” module_class=”zoom-blog” masonry_columns_tablet=”” masonry_columns_phone=”1″ masonry_columns_last_edited=”on|phone” _builder_version=”4.18.0″ _module_preset=”default” filterable_category_font_size=”20px” active_filterable_category_font_size=”20px” header_font=”Lato||||||||” header_font_size=”1.25rem” header_line_height=”1.88rem” meta_text_color=”#686E6E” meta_font_size=”16px” custom_css_title=”font-weight:900!important;” custom_css_post_meta=”margin-top:-32px!important;” locked=”off” global_colors_info=”{}” custom_css_title__hover_enabled=”on|desktop” custom_css_title__hover=”font-weight:900!important; text-decoration:underline;”][\/et_pb_blog_extras][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The Bank of Canada’s overnight rate is at its highest level in 15 years, but it may have peaked.<\/p>\n","protected":false},"author":14,"featured_media":276631,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"2880","footnotes":""},"categories":[21],"tags":[],"dipi_cpt_category":[],"class_list":["post-9143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy"],"acf":[],"_links":{"self":[{"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/posts\/9143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/comments?post=9143"}],"version-history":[{"count":1,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/posts\/9143\/revisions"}],"predecessor-version":[{"id":293835,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/posts\/9143\/revisions\/293835"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/media\/276631"}],"wp:attachment":[{"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/media?parent=9143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/categories?post=9143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/tags?post=9143"},{"taxonomy":"dipi_cpt_category","embeddable":true,"href":"https:\/\/wahi.com\/ca\/en\/wp-json\/wp\/v2\/dipi_cpt_category?post=9143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/span>
<\/span>The latest move is part of a <\/span>strategy to lower inflation<\/span><\/a>. By increasing the cost of borrowing, the BoC hopes to reduce spending, which inflates the costs of goods and services. While repeated hikes may leave some wondering whether rates will go even higher, many market-watchers suggest the Bank of Canada won\u2019t be stepping on the throttle again any time soon.<\/span><\/p>\n“We anticipate the Bank of Canada to remain on hold for the foreseeable future.”<\/strong><\/h2>\n
<\/b><\/h2>\n
<\/b><\/h2>\n
No More Interest Rate Hikes for 2023?\u00a0\u00a0<\/b><\/b><\/h2>\n
<\/h3>\n
Yu notes that inflation has started showing signs of slowing. Annual inflation tracked at 6.3% in December, down from 6.8% in November, according to the Consumer Price Index<\/a>, which measures the cost of things like food and shelter over time.<\/span><\/span><\/p>\n<\/ul>\n
We put the real<\/em> back in real estate.<\/span><\/h2>\n
<\/b><\/h2>\n
<\/b><\/h2>\n
<\/b><\/h2>\n
What the Bank of Canada Is Saying\u00a0\u00a0<\/b><\/h2>\n
<\/h3>\n
Rapid Rate Hikes Were Necessary, Experts Say<\/b><\/h2>\n
<\/span>
<\/span>Cheap financing via low rates stokes demand by encouraging borrowing. Meanwhile, supply-chain issues, like those seen during COVID-19 lockdowns, reduce inventory levels. Both forces put upward pressure on prices \u2014 as per the <\/span>law of supply and demand<\/span><\/a> \u2014 and have required a strong response from the central bank.<\/span>
<\/span>
<\/span> \u201cThe overnight rate is the key policy lever used by the Bank of Canada to impact demand,\u201d Marc Desormeaux, principal economist at Desjardins, told Wahi. \u201cBorrowing costs go higher \u2014 that has an impact on demand. That\u2019s intended to cool the economy in a way that helps slow inflation, and that\u2019s what\u2019s going on right now,\u201d he added.<\/span>
<\/span>
<\/span>As for the speed at which the BoC has acted, Moshe Lander, senior economics lecturer at Concordia University, told Wahi that the central bank had to \u201cmake up for lost time.\u201d He suggested the BoC delayed hiking rates earlier as the pandemic-shocked economy was too sensitive and has had to cram in more hikes over a shorter period as a result.<\/span><\/p>\n<\/ul>\n
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