Estimating the bank rate forecast won't be anything but a good educated guess. Doesn't matter how well educated or well-researched the economists are they can not come up with a perfect prediction about the banks rates for the future. Experience and knowledge combine might give a good idea about how bank interest rate might be in close future but not exact. That's why here we are inviting mortgage / Loan experts to share their view about the future of the bank rate.
Here in Iranian real Estate we will just offer you some facts about this matter. At the beginning of 2019 there was a prediction that the Bank rates will rise because of the improvement in Canadian economy but it's most likely the opposite. the Canadian Prime Rate hikes being on hold because of the unpredictable future and some experts think it might even drop a little more. Some major banks (like TD Canada Trust, CIBC and BMO) believe that the rate will drop by the end of 2019 and through 2020 but others like National Bank or Desjardins predicting unchanged prime rate till 2021. What is Bank Rate: The Bank Rate is the rate that each bank can borrow money from the Bank of Canada and that's what controls the Mortgage Rates, if the Bank Rate goes up the mortgage rates and variable rates will go up, so everything is based on the Canadian economy. If country facing recession then the Bank Rates will go down so as the Mortgage rates and …, if we will have a good economy then the Bank Rate will rise.
Are we facing recession in Canada in 2020?
Christian Lawrence (senior market strategist at Rabobank) believes that the Canadian economy will face recession in the second half of 2020. There's another look, Rachael Moir thinks In spite the fact that the global economy is at risk of a recession Canada might stay immune read more.
The recession and Canadian Bank Rates are very much depending on the global economy specially U.S. economy. U.S. election in 2020 plays a big role in Canadian economy. Since U.S. is Canada's biggest neighbor and there are big trade deals between the 2 country so the next president of the United State will play a big role on this