In its latest provincial forecast, CIBC Capital Markets predicts that the country could be in store for a 125-basis-point rate cut this year.
Feb 15, 2024
The BoC head instead pointed to other aggravating factors, like the lack of housing supply, exacerbated by "zoning restrictions, delays and uncertainties in the approval processes, and shortages of skilled workers."
Chow made the case for a much more palatable 8% raise — which would be combined with a 1.5% increase for the city building levy — when she tabled her version of the 2024 budget on Thursday.
The multi-residential property tax increase is currently proposed at 4.5%, but Chow hopes to lower that figure in an effort to prevent above-guideline rent increases, as well as evictions linked to AGIs.
"The Bank of Canada’s job is getting inflation under control. When there’s a setback like this, that should realistically postpone any possibility of a rate cut."
Though the presumed timing of rate cuts should help to boost home sales, TD’s Rishi Sondhi tells STOREYS that prices may not follow suit and are expected to slip though the first quarter and flatten in the second.