Still, Laird said that barring unexpected developments – a “variable that comes out of left field” – the worst of the rate increases appears to be in the rear-view mirror, with inflation well on its way towards the Bank’s target rate.

Macklem’s emphasis that the Bank was prepared to move further on interest rates could be the intentional use of more hawkish language than its base case or most likely plan, according to Laird, as a means of making sure market predictions don’t run awry and keeping expectations firmly in check.

“It’s kind of a good thing to have that sort of threat that rate hikes might still be on the table,” he said. “I think it helps their cause by keeping the hawkish language in there without raising the rates further.        

“They have, in a way, two tools. There’s the rate policy itself, but then there’s also their language. Of course, the rate policy is far more effective, but people’s emotion and sentiment matters also, and so they can use that language as a tool to slow things down – and I think they should, and they did.”

What’s next for the Canadian mortgage market?

The Bank’s announcement did little to change the housing market outlook for the remainder of 2023, said Laird, which continues to evolve largely as expected: with moderate interest from disciplined buyers who aren’t prepared to stray much over the listed price to secure a property.