The Bank of Canada is holding its key interest rate at 2.25 per cent for the fourth consecutive time, while cautioning of higher short-term inflation. “The risks are shifting and we are prepared to adjust monetary policy as needed,” Bank of Canada Governor Tiff Macklem said from Ottawa. The central bank says the economy is in a healthy position for now, but future rate decisions will be based on developments in the Middle East and if Canada and the United States strike a new trade deal. “That certainly makes that rebound more uncertain,” said Macklem. “But as I stressed, we have to keep our eye on inflation.” Despite the rate hold, a local Calgary realtor says it will have little impact on the market. “Interest rates are quite good, kind of getting better for buyers,” said Brian Van Vliet, a realtor with Real Estate Professionals. “So, we’re seeing a little bit of a switch in the market.” Calgary market The Calgary Real Estate Board released its latest data this week. Sales and new listings slowed last month, with sales dropping 16 per cent compared to August of last year. The median residential benchmark price for a detached home reached $569,800. “We have a lot of folks that are still listing their house like it was two summers ago,” said Van Vliet. “I would think of it a little bit like a boxing match. So, for the last few years sellers have been winning every round. And now buyers have the sellers up against the ropes in a lot of cases.” Gas prices Alberta Premier Danielle Smith made an appearance on CNBC, an American media outlet Wednesday. She continues to call for renewed negotiations between the US and Canada ahead of reciprocal tariffs scheduled to take effect next week. “Gas prices are hurting your people. They’re hurting our people,” Smith told CNBC. “We’re seeing still disruption in the Strait of Hormuz.” The Bank of Canada is scheduled to make its next interest rate announcement on Oct. 28.
