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Mortgage and Economic Report
From Sean Smith of Dominion Lending
Canada:
As expected, the Bank of Canada held its overnight lending rate today at 5%, for the 6th consecutive time. Most bank prime rates are 7.2% to 7.35%.
A higher than expected US inflation report has lead to bond yields increasing, leading to upward pressure on fixed rates.
Canada’s economy expanded at its fastest rate for a year in January, with GDP growth (gross domestic product) ticking up to 0.6% in a development that all but torpedoed the prospect of an April rate cut.
Still, the national jobless rate jumped to 6.1% in March, the largest month-over-month increase in the unemployment rate since mid-2022, as the economy shed 2,200 jobs.
US:
US inflation rises to 3.5%, leading to US markets slashing rate cut bets.
Markets are now betting that US rate cuts may not begin until November, at a Fed meeting scheduled just after the US presidential election.
CPI had risen to 3.2 per cent in February from 3.1 per cent in January.
Figures exceed expectations as Federal Reserve considers how long to keep rates at 23-year high.
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