The recent decision of the Bank of Canada to hold steady on interest rates and governor Stephen Poloz’s prediction for second-quarter growth have been questioned by the president of mortgage broker Bob Aggarwal says that the governor’s forecast “may be a little optimistic” and explains why he believes there could be more interest rate cuts to come: “Canada’s economy contracted for the first time in nearly four years in the first quarter, which is also the most since the 2009 recession. Meanwhile, the U.S. economy contracted 0.7% in the first quarter.”

Mr Aggarwal says that with GDP declining and rebounding oil prices putting upward pressure on the Canadian dollar there may be a need for the BoC to stimulate sluggish growth with an interest rate cut to zero. Even lower rates would be good news for the mortgage business: The ultra-low-interest-rate environment will continue to benefit those looking to refinance their mortgages” Aggarwal commented, and advised that a licensed mortgage broker will help consumers find the best refinancing option.

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