According to this news article on CBC, the Bank of America in predicting that the Bank of Canada may be forced to make further rate cuts later this year.
“Even as the Fed begins a gradual rate hike cycle this year, we think the Bank of Canada will remain accommodative, and will likely ease by another 25 basis points to 0.5 per cent if growth disappoints, as we expect”.
“Although the C$ will ease, the scope for persistent depreciation is limited given gradually recovering oil prices. In sum, the growth headwinds due to tighter financial conditions will handcuff the Bank of Canada in a state of continued monetary policy easing”.
With fairly low inventory and the prospect of lower rates – will this translate into increased prices and sales volume in Victoria? At what point will the market be “tapped out”?