Bank of Canada Cuts 50 Basis Points to ‘Stick the Landing’
finance.yahoo.com
(Bloomberg) -- The Bank of Canada stepped up the pace of interest-rate cuts and signaled that the post-pandemic era of high inflation is over.Most Read from BloombergClimate Change Is Killing Buildings in Slow MotionOman Sees an Urban Future Distinct From Dubai and Abu DhabiTransportation Policy Gets Left Behind in Presidential RaceHow Kyiv Became a Leader in Digital Services Amid Wartime StrainDhaka's Revolutionary Makeover Pits Visions of Peace Against VengeancePolicymakers led by Governor Tif
  • wise_pancake@lemmy.ca
    9·
    1 month ago

    I’m surprised but not really.

    This is what was meant by the inflation is transitory line, the timelines are just much longer and the effect is more painful than people expect.

    I’m hoping this injects some serious stimulus into the housing construction industry to boost housing supply, but I would have liked to see the government offering direct low interest loans or even construction bonds with tight default rules or co-ownership stipulations.

    • RandAlThor@lemmy.caOP
      15·
      1 month ago

      Stimulus in way of rising housing prices where affordability becomes harder and harder to reach for the masses, yes it will. But we’ve seen this for the last 15 years. It ain’t the interest rates that’ll boost supply to solve our housing problem. It’s the supply constraints - ie labour, red tape including building restrictions, nimby, air b&b etc that are holding things back.

      • wise_pancake@lemmy.ca
        8·
        1 month ago

        Yeah, they’re not going to be affordable, but more supply is more supply in a shortage.

        I’m on board with easing constraints so long as homes are built soundly and owners aren’t left holding an expensive crumbling house.

  • MakingWork@lemmy.ca
    8·
    1 month ago

    While I like the idea of a lower interest rate, I also wonder what it will do. Will it drive housing prices up? Will it stimulate the economy by encouraging people to take debts and loans?

    Did they lower rates to encourage people to take out loans?

        • Croquette
          5·
          1 month ago

          We’re in an era where corporations are buying housing at an unprecedented rate.

          They have deep pockets, so even though the people holding mortgage will see relief, we will also see more housing bought by corporations.

          The normal person cannot compete with the corporations, and they will have to either outbid the corporation, or hope that the seller find their story touching and sell them the house even if the bid is lower.

          So yeah, prices will raise for sure.