Experts expect a gradual reduction in the key interest rate in Canada and the United States, but can we expect to reach a stable target in 2024?
• Also read: Mortgage extension in 2024: Will homeowners benefit?
Economist Francis Gosselin took stock of the interest rate situation that is causing problems for Canadian mortgage holders.
While many will have to renew it in 2024, they are encouraged by possible rate cuts that could come in the second half of the year.
Although the Bank of Canada could make recurring 25-point interest rate cuts, when can we expect the country to reach a stable target of 2% interest rate?
For Bank of Canada Governor Tiff Macklem, the population still has to be patient as the stable target is unlikely to be achieved before 2025.
“Mortgage rates are not expected to return to levels during or before the pandemic. If there are rate cuts at the end of 2024, it will probably be a quarter point, another quarter point,” he shares in an interview on LCN, specifying that everything will happen “gradually.”
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He adds that the inflation context, although it has stabilized, continues to have an impact on the economy.
*Watch the interview in the video above*