Canada's Inflation Rate Climbs, But Interest Rate Hike Unlikely

Canada's inflation rate climbed to 3% in August, but experts don't think this will lead to an interest rate hike by the Bank of Canada next month. According to Statistics Canada, rising oil prices continue to drive up the overall inflation figure.

Haventree Bank president and CEO Fern Glowinsky told Canadian Mortgage Professional that she expects the Bank to keep rates steady in September. She cited GDP growth, declining unemployment, and increased home sales as positive indicators for the economy.

Glowinsky also noted that a prolonged Iran conflict could impact the market, but the current trend suggests a more positive outlook. 'Now is probably a good time to have a conversation and explore options as a borrower to have some certainty and some security in terms of what your mortgage payments might look like over the next while,' she said.

The news comes as a trade deal between Canada and the US has been rumored, which could boost consumer confidence. Home sales have increased for the fourth month in a row, with Royal Bank of Canada suggesting this may signal a turning point for the housing market.