In Conversation With Dr. Sherry Cooper - No Changes To Prime Rate

The Bank of Canada met last month while we were away on holidays and made no changes to their overnight rate.  Our DLC Chief Economist offered us an economic outlook and these are her thoughts and predictions:

Two More BoC Cuts Predicted: Dr. Sherry Cooper says the Bank of Canada won’t cut rates until core inflation softens and labour markets weaken further. However, two more 25 bps rate cuts are expected in 2025, bringing the policy rate to 2.25% by fall.

Recession Forecast: Dr. Sherry Cooper believes Canada has already entered a mild recession (0.5%) due to trade exposure and global volatility.

Muted Housing Market: Home sales remain slow in 2025, potentially making it a favorable year for buyers.

Mortgage Rule Watch: OSFI may adjust the mortgage stress test, possibly lowering the qualifying rate buffer below 200 bps.

Have questions about how market changes impact your mortgage, call us today!