I don't know, I think the price hikes have stopped, but the sticker shock from the past price hikes remains. That by definition is the end of de jure inflation.

The real scary problem that smart economists are pointing at is that now the prevailing rent for available units is horrifying -- not the rent most people are paying, but the rent they'd pay if they moved today. Most people who are in rent-controlled units or just have friendly landlords don't know how bad it will be if they have to start looking again. That's a ticking time-bomb, one that a landlord can detonate prematurely with a renoviction.

An aside but one thing I do/don't like with lemmy (yes on fence) is the editorializing when posting links.

That said, I'm happy rates stayed for now. We are now in wait and see mode. Will it go up more? Who knows. Rumour is another .25 hike this year and done. Time will tell.

Edit - oh and housing prices by and large won't be impacted unless the litany of other underlying issues are addressed which no party is currently doing.

Inflation has abated significantly. Inflation is not prices, it is the rate that prices are increasing. Prices staying high is not inflation.

The levels that rent has reached is the real killer. That will continue to roll out across the population for years to come and is going to be a massive standard of living killer.

This is the best summary I could come up with:

The Bank of Canada opted to hold its benchmark interest rate steady at five per cent as the economy is showing more and more signs of cooling.

The move was widely expected by economists and other financial observers, as the central bank's unprecedentedly swift campaign of rate hikes since early 2022 have made major headway on bringing down runaway inflation.

That's the first shrinkage since the onset of the pandemic and a sign the economy may be tipping into at least a mild recession.

In a statement accompanying its decision, it said it "remains concerned about the persistence of underlying inflationary pressures, and is prepared to increase the policy interest rate further if needed."

Royce Mendes, an economist with Desjardins, says it is noteworthy that policymakers at the central bank "aren't completely shutting the door to further rate increases."

"The recent string of weak data reinforces our call that the Bank of Canada will not be raising rates any further this cycle," Mendes said.

The original article contains 386 words, the summary contains 162 words. Saved 58%. I'm a bot and I'm open source!