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The Bank of Canada has decided to maintain its benchmark interest rate at five percent as signs of an economic slowdown become increasingly evident. This decision aligns with the expectations of economists and financial experts. The central bank's rapid series of interest rate hikes since early 2022 has made significant progress in curbing runaway inflation.

It's worth noting that the effects of interest rate changes can take up to 18 months to fully materialize. With rates climbing from virtually zero to five percent in just over a year, there's a risk of over-tightening monetary policy, potentially causing an economic slowdown.

Recent financial indicators provide cause for concern. July's job data indicated a loss of approximately 6,000 jobs, with a slight uptick in the unemployment rate to 5.5 percent. Additionally, GDP data for the second quarter of 2023 revealed economic contraction, marking the first decline since the onset of the pandemic and suggesting the possibility of a mild recession.

Jim Thorne, a strategist at Toronto-based investment firm Wellington-Altus, is critical of the central bank's approach, suggesting that not only is there no valid reason for further rate hikes, but it's also challenging to justify some of the previous hikes retroactively. Thorne believes that the Bank of Canada should have stopped at 2.5 percent to allow the situation to stabilize, cautioning against using monetary policy as a precision tool, as it can have broad and unintended consequences.

Thorne predicts a hard landing for Canada's economy in the coming year due to excessive debt and strained consumers, rather than the hoped-for soft landing. He questions the rationale behind the Bank of Canada's continued rate increases, especially when real gross domestic income is in negative territory.

While some, like Thorne, fear that the central bank may have gone too far with rate hikes, the bank remains prepared to raise rates further if necessary, expressing concerns about persistent inflationary pressures.

Armine Yalnizyan, the Atkinson Fellow on the Future of Workers, argues that raising interest rates may not effectively address the inflation problem and could potentially worsen the situation.

Royce Mendes, an economist with Desjardins, points out that policymakers at the central bank are hesitant to rule out additional rate increases entirely, as prematurely signaling the end of rate hikes could disrupt financial conditions. However, he believes that the recent string of weak economic data makes it likely that the Bank of Canada has completed its rate hike cycle.

For homeowners like Shahan Ahmed, the decision to potentially halt rate hikes couldn't come soon enough. Ahmed, who owns a home in Brampton, purchased a second property for investment purposes in 2021. He anticipated that the rate on his variable-rate mortgage would increase gradually, but the rapid succession of interest rate hikes, often in sizable increments, caused his mortgage payment to nearly double. Struggling to cover his costs, Ahmed has taken on a second job and now works 15-hour days.

Despite the challenges, he's hesitant to sell his properties because doing so would result in a significant paper loss. Ahmed, like many others, hopes that there won't be any further rate hikes, as he and his family are at their breaking point, unable to absorb additional financial strain.

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New property listed in Abbotsford East, Abbotsford

I have listed a new property at 3395 APPLEWOOD DR in Abbotsford. See details here

Incredible views from San Juan Islands to the N. Shore Mountains! This custom designed home features a wonderful kitchen with SS appliances & quartz topped island for the gourmet cook. The great room has an 18' vaulted ceiling and floor to ceiling fireplace mantle. The main floor has hardwood and tile, 8' doors, dining room, separate den/office, large laundry room, and a deck to enjoy the views. Upstairs the magnificent master suite includes a vaulted ceiling, large walk-in closet, huge spa-like ensuite, and your own private deck. Downstairs has more rooms for the upstairs use and a beautiful one bedroom legal suite with the same quality finishing as upstairs. Call today to view this beauty.

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New property listed in Langley City, Langley

I have listed a new property at 409 19825 54 AVE in Langley. See details here

This stunning 2-Bed 2-Bath within Langley’s new condo development – Forme on 54th can be yours! Within an already emerging neighborhood, this unit gives you the best of Fraser Valley. Inside, you have a gorgeous new kitchen featuring granite counters, SS Appliances, chrome hardware and incredible tile backsplash, continuing through your spacious and open concept living. With generous sized bedrooms, built-in closet shelving, and luxurious ensuite! Close to shopping, amenities, trails, and parks. This accessible South Langley location brings you close to the new Skytrain line linking to Vancouver – the perfect investment opportunity in this most up & coming new community! Call for more details!

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Open House. Open House on Saturday, August 5, 2023 11:00AM - 1:00PM

Please visit our Open House at 32 3800 GOLF COURSE DR in Abbotsford. See details here

Open House on Saturday, August 5, 2023 11:00AM - 1:00PM

Welcome to this prestigious golf course development! This fully renovated 5-bedroom, 4-bathroom home boasts breathtaking views and features a brand new kitchen with beautiful quartz countertops and high-end appliances, along with high-end laminate floors throughout. Nothing was left untouched even the patios were updated to enjoy views year round. With 3 bedrooms and 2 bathrooms upstairs the Primary bedroom offers amazing views. Located in a gated community close to town and all amenities, this property offers the perfect blend of luxury, convenience, and security. Don't miss the chance to experience the epitome of modern living with serene surroundings and easy access to everything you need. Contact us now for a private tour! Open house Saturday July 29,2023 2pm to 4pm

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New property listed in Abbotsford East, Abbotsford

I have listed a new property at 32 3800 GOLF COURSE DR in Abbotsford. See details here

Welcome to this prestigious golf course development! This fully renovated 5-bedroom, 4-bathroom home boasts breathtaking views and features a brand new kitchen with beautiful quartz countertops and high-end appliances, along with high-end laminate floors throughout. Nothing was left untouched even the patios were updated to enjoy views year round. With 3 bedrooms and 2 bathrooms upstairs the Primary bedroom offers amazing views. Located in a gated community close to town and all amenities, this property offers the perfect blend of luxury, convenience, and security. Don't miss the chance to experience the epitome of modern living with serene surroundings and easy access to everything you need. Contact us now for a private tour! Open house Saturday July 29,2023 2pm to 4pm

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Open House. Open House on Sunday, July 30, 2023 2:00PM - 4:00PM

Please visit our Open House at 32 3800 GOLF COURSE DR in Abbotsford. See details here

Open House on Sunday, July 30, 2023 2:00PM - 4:00PM

Welcome to this prestigious golf course development! This fully renovated 5-bedroom, 4-bathroom home boasts breathtaking views and features a brand new kitchen with beautiful quartz countertops and high-end appliances, along with high-end laminate floors throughout. Nothing was left untouched even the patios were updated to enjoy views year round. With 3 bedrooms and 2 bathrooms upstairs the Primary bedroom offers amazing views. Located in a gated community close to town and all amenities, this property offers the perfect blend of luxury, convenience, and security. Don't miss the chance to experience the epitome of modern living with serene surroundings and easy access to everything you need. Contact us now for a private tour! Open house Saturday July 29,2023 2pm to 4pm

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Open House. Open House on Saturday, July 29, 2023 2:00PM - 4:00PM

Please visit our Open House at 1 23809 OLD YALE RD in Langley. See details here

Open House on Saturday, July 29, 2023 2:00PM - 4:00PM

Welcome to this beautiful, brand-new 2-story home with a private driveway! The home features 4590 square feet of quality craftsmanship, four extra large bedrooms, five bathrooms, and a 2-bedroom legal suite. Every bedroom has its own walk-in closet. With a backyard accessible from your main floor, it is an entertainer's dream. This home is beautifully designed with an open-concept layout in mind, with quality touches throughout the home. Located in Langley’s countryside close to Murrayville, with easy access to schools, shopping, and Highway 1. Call now for your personal showing. (Home located off Old Yale)

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Open House. Open House on Saturday, July 29, 2023 12:00PM - 2:00PM
Please feel free to come by our open house.

Please visit our Open House at 35088 MT BLANCHARD DR in Abbotsford. See details here

Open House on Saturday, July 29, 2023 12:00PM - 2:00PM Please feel free to come by our open house.

Welcome to Mt Blanchard, a very desirable area where you'll find the perfect family home. With 5 bedrooms and 3 bathrooms, this home offers ample space for families. Conveniently located next to Abbotsford Christian Secondary, it features a 1-bedroom mortgage helper, a spacious driveway, and a delightful yard for summer evenings. Don't miss out on this wonderful opportunity. Call now for your viewing. Open House July 29th 12pm to 2pm

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Open House. Open House on Sunday, July 23, 2023 2:00PM - 4:00PM

Please visit our Open House at 2666 PLATFORM CRES in Abbotsford. See details here

Open House on Sunday, July 23, 2023 2:00PM - 4:00PM

This incredible home is a must-see for large and growing families, boasting 9 bedrooms and 8 bathrooms. The moment you step inside, the high ceilings and grand staircase make a striking impression. The upstairs level offers 4 bedrooms and 3 bathrooms, along with an additional master bedroom on the main floor with an ensuite and a walk-in closet. The spacious driveway easily accommodates multiple cars, and the backyard is perfect for enjoying warm summer evenings. With a generous size of 4847 sq ft, this home offers exceptional value at its current price and is sure to attract attention. Not to mention this home comes with 2 bedroom legal suite! Don't wait too long, as this opportunity won't last! No GST

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New property listed in Abbotsford East, Abbotsford

I have listed a new property at 35088 MT BLANCHARD DR in Abbotsford. See details here

Welcome to Mt Blanchard, a very desirable area where you'll find the perfect family home. With 5 bedrooms and 3 bathrooms, this home offers ample space for families. Conveniently located next to Abbotsford Christian Secondary, it features a 1-bedroom mortgage helper, a spacious driveway, and a delightful yard for summer evenings. Don't miss out on this wonderful opportunity. Call now for your viewing.

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New property listed in Aberdeen, Abbotsford

I have listed a new property at 2666 PLATFORM CRES in Abbotsford. See details here

This incredible home is a must-see for large and growing families, boasting 9 bedrooms and 8 bathrooms. The moment you step inside, the high ceilings and grand staircase make a striking impression. The upstairs level offers 4 bedrooms and 3 bathrooms, along with an additional master bedroom on the main floor with an ensuite and a walk-in closet. The spacious driveway easily accommodates multiple cars, and the backyard is perfect for enjoying warm summer evenings. With a generous size of 4847 sq ft, this home offers exceptional value at its current price and is sure to attract attention. Not to mention this home comes with 2 bedroom legal suite! Don't wait too long, as this opportunity won't last! No GST

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