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  • Keith&Jacqueline

What Today's Inflation Numbers Mean | March 2024

We’re headed in the right direction. Let’s hope for more positive news tomorrow.

February's inflation numbers came in lower than expected this morning at 2.8%. Economies had expected an uptick after a dip in inflation in January at 2.9%. Core inflation is also down which is what the Bank of Canada monitors closely.

Shelter costs are still the biggest driver of inflation and if those were removed then we'd be close to the Bank of Canada's target of 2%. We’re unlikely to see a Bank of Canada rate cut in April but things are certainly trending in the right direction. Remember the Bank of Canada's rate decision directly impacts variable rate mortgages and lines of credit.

We've seen a slight dip in bond deals this morning in response to the good inflation data but not big enough to warrant a decrease in fixed rates. Remember that the bond market directly impacts fixed-rate mortgages.

The US Fed has their interest rate announcement tomorrow that will have a direct impact on the Canadian bond market because the US is Canada's biggest export partner and what happens in the States has ripple effects into Canada.

Stay tuned for more updates and if you have any questions feel free to reach out we're always happy to help.

Keith Baker | | 604.723.5363

Jackie Zerbe | | 604.724.6982

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