Bank of Canada interest rate decision & managing rate cut expectation #canadianmortgages #realestate

The Bank of Canada held steady on its policy rate today, leaving the retail prime rate unchanged at 7.20%. Now, the big question on everyone's mind: when will we see rate cuts?

If you've been following the headlines, you've probably heard the buzz about a potential drop around June. But before you start planning your financial strategy around that date, let's take a closer look.

Yes, while it's certainly a possibility, let's not overlook some key factors that could throw a wrench in that timeline. For starters, the US economy is flexing its muscles, showing no signs of slowing down. And if Canada moves first, it could spell trouble for our loonie and inflation rates.

Plus, there's the risky game with the housing market. As one chief economist bluntly put it, a premature rate cut could be "the dumbest thing" our central bank could do.

So, should we mark our calendars for June? Maybe. But let's not get too attached to that idea. Remember, the economic landscape is ever-changing, and nothing is set in stone.