In this article, we discuss the interest rate predictions Canada 2023-2024. The current Bank of Canada interest rate is 5.00 (+0.25) on July 12, 2023. In July 2023, the Bank of Canada announced to increase the interest by +0.25 from 5.00.
Bank of Canada increases the interest rate to control inflation in Canada. High inflation helps to decrease the demand for goods and services. In this way, the Canadian economy will stay in
stable Condition.
The interest rate hike in Canada helps maintain the Canadian economy and GDP balanced. Suppose the Bank of Canada will not increase the interest rate in Canada right now. In that case, it will be hard for the Canadian government to maintain the GDP and Canadian economy in stable condition.
Interest Rate Predictions Canada 2023-2024
According to our interest rate predictions for 2023, the Bank of Canada will increase the interest rate in the upcoming months of 2023. Right now, an interest rate hike is the only way to control the high inflation in Canada.
| Variable Interest rate predictions Canada 2023 | Fixed Interest rate predictions 2023 | |
| 1 October 2023 | 5.75% | 7.20% |
| 30 December 2023 | 6.03% | 7.50% |
Bank economists forecast the interest rate Canada would see another 0.25% hike in the interest rate at the end of 2023. So, this is the Bank of Canada interest rate forecast for 2023.
In 2024, we predict that the Bank of Canada might reduce the interest rate by 2%. It all depends upon inflation and GDP of the Canada. If the inflation gets lower in 2024 then we see a reduction in the interest rate.
This will help people to pay less mortgage payments. According to our prediction, there will be no change in the interest rate in September 2023. We might see another 0.25% hike in interest rates in October or November 2023. This interest rate hike might be the last hike for 2023.
According to bank economists, the interest rate will go higher if inflation does not go down. The real estate market getting hot due to interest rate hikes. House prices are increasing due to low supplies in the market. This will make the people to buy houses in the future.
The current Canada mortgage prime interest rate is 6.95%. This is a fixed mortgage interest rate. The variable interest rate is around 5.59% in Canada right now.
Interest Rate Predictions Canada 2024
In 2024, the interest rate might be high between January to April. The variable interest rate is forecast 6.15% in the first six months of 2024.
| Variable Interest rate predictions Canada 2024 | Fixed Interest rate predictions Canada 2024 | |
| January to April 2024 | 6.15% | 7.85% |
| 30 December 2024 | 5.24% | 6.10% |
From June to December 2024, the Canada variable interest rate prediction will be 5.24%. So, these are the Canada interest rate predictions for 2024.
If inflation will go down next year. Then of course we will see a reduction in interest rates.
Currently, in Canada inflation is at its peak. Due to high-interest rates, people have to pay high mortgage payments, rent prices, fuel, bills, and groceries.
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