Bank of Canada Rate Decision Tomorrow on April 16th

The Bank of Canada is back in the spotlight tomorrow, Wednesday, April 16, with its next rate decision.

Will they cut rates?

At this point, a cut isn’t expected — but with this morning’s weaker-than-expected inflation announcement (down from 2.6% to 2.3%), nothing is certain until the 10 a.m. EDT/ 7 a.m. PDT announcement.

As per Dr. Sherry Cooper, Chief Economist with Dominion Lending Centres, “Even if the Bank does not cut rates in April, we will likely see three more 25-basis-point cuts this year, bringing the overnight rate down to 2.0%—300 bps lower than its peak last year.”

Housing market delays

A recent Royal LePage survey shows that nearly half (47%) of prospective buyers are delaying their purchase decisions due to uncertainty tied to U.S. trade tensions. While surveys can’t always paint a full picture, the national results can be viewed here.

The Canadian Real Estate Association also released data today, outlining that existing home sales declined by 4.8% month-over-month. Along with declines in the three previous months, national home sales are now down 20% from their recent high recorded last November.

"Up until this point, declining home sales have mostly been about tariff uncertainty. Going forward, the Canadian housing space will also have to contend with the actual economic fallout. In short order we’ve gone from a slam dunk rebound year to treading water at best,” said Shaun Cathcart, CREA’s Senior Economist.