Daniel Foch on YouTube
Bank of Canada calls out the condo market & holds rates at 2.25%
Published July 16, 2026
Topics: Bank of Canada, Condos, Housing Market
About this video
BoC Holds at 2.25%—But the Monetary Policy Report Signals Trouble for Canadian Housing
The episode argues the Bank of Canada’s biggest news isn’t the rate hold but the accompanying Monetary Policy Report, which suggests a fragile Canadian recovery and a subdued housing outlook. While the BoC held the policy rate at 2.25% and expects inflation—recently 3.2% in May, driven mostly by gasoline—to ease toward 2%, the forecast relies on oil stabilizing around US$70–75 and includes risks from a weaker Canadian dollar and imported inflation. The report notes soft employment, a negative output gap, and a 2026 growth forecast cut to 0.7%, with housing expected to be a drag on GDP in 2026 before only modest improvement later. It highlights affordability, slowed population growth, uncertainty, and unsold small condo inventory in Toronto and Vancouver as key constraints, advising borrowers to watch bond markets more than hoped-for cuts.
00:00 Biggest BoC News
00:28 Monetary Report Warning
01:29 Inflation And Oil Assumptions
03:01 Economic Backdrop Breakdown
05:29 Bond Market And Dollar
06:55 Housing Stabilization Claims
07:53 Condo Overhang Risks
09:10 Housing Hits Consumers
10:12 Mortgage Rate Reality Check
11:16 Neutral Rate And Next Moves
13:15 Forecast Cuts And Oil Threat
15:44 Wrap Up And Viewer Questions
#canada #bankofcanada #torontorealestate #canadarealestate #canadaeconomy #canadanews
Put this video to work
Rates move the math. Stress-test a deal at today's mortgage rates — free.