Bank of Canada hold solidifies June cut: experts

Experts believe the Bank of Canada’s recent rate hold is a further indication that Canadians may need to wait until the summer before seeing any mortgage relief.

On Wednesday, the Bank of Canada held its policy rate for the fifth consecutive time as it looks to bring inflation down to its target of two per cent. The move fell in line with economists’ unanimous expectations, as the central bank warns that it is still too early to begin cutting.

While some economists previously predicted an April date for the first cuts, most now believe it will be pushed back to June.

“Markets had priced in a June cut, that aligns with our forecast, so I think it is more of the same,” Dawn Desjardins, chief economist with Deloitte Canada, told BNN Bloomberg in a television interview on Wednesday. “We’re getting there, but we’re not there yet. So the bank, certainly, wants to lean against markets very aggressively, moving to mode of rate cuts that begin early and are sustained.”