Bank of Canada<\/a> has hiked its rate, shocking many prospective homebuyers and leaving many with no choice but to pull back from the market.<\/p>\nWhile this last rate hike might seem like a kick in the pants to prospective buyers, it\u2019s the smallest increase since March 2022 \u2013 and according to the bank, it will likely be the last for the next little while.<\/p>\n
\u201cWith today\u2019s modest increase, we expect to pause rate hikes while we assess the impacts of the substantial monetary policy tightening already undertaken,\u201d Tiff Macklem, title here said in a press conference. \u201cTo be clear, this is a conditional pause \u2013 it is conditional on economic developments evolving broadly in line with our outlook.\u201d<\/p>\n
According to the Bank of Canada, inflation is projected to come down significantly this year. It\u2019s expected that inflation will come down to approximately 3 percent by the middle of 2023 and will return back to its target rate of 2 percent by 2024.<\/p>\n