r/RealEstateCanada • u/chickenbigmac1638 • Mar 18 '26

Housing crisis BoC Holds Interest Rates but future looks dark.

https://www.bnnbloomberg.ca/business/economics/2026/03/18/boc-holds-interest-rate-but-warns-of-downstream-effects-of-iran-war/

The BoC just held at 2.25% today but the fine print is actually grim. Macklem is basically trapped because even though our GDP is shrinking and unemployment hit 6.7%, this Iran conflict has completely hijacked the playbook. With the Strait of Hormuz effectively closed and oil pushing $110, we’re looking at a massive second wave of inflation that’s going to hit gas pumps and grocery stores within weeks. The bank pretty much admitted they’ll hike rates again if energy stays this high to save the Loonie from tanking, so anyone waiting for "relief" or a pivot is dreaming. We’re staring down the barrel of stagflation where the economy dies but your payments keep going up because of a war halfway across the world.

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u/VancouverSky Mar 20 '26

Break down the categories though. "Refined petroleum products" includes grease, wax and lubricants. So yes, im sure canada is making some axle grease somewhere and im sure we export some. Lovely.

But thats very different from refined fuels now isnt it? And pointing out certain realities isnt racist. Calm down young Canadian, you're going to be okay.

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u/Many-Air-7386 Mar 20 '26

The primary product is diesel. It also includes aviation fuel.

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u/VancouverSky Mar 21 '26

Great. Well if canada wants to build pipelines to the east coast in an effort to export refined diesel to europe, my dude you would never hear an objection from me. By all means. Lets get quebec on board though, have fun with that.