The Bank of Canada has reduced its concerns about the housing market overheating, attributing this to ongoing affordability challenges that are cooling demand. Elevated borrowing costs are tempering housing demand, while declining mortgage rates and population growth may increase demand but are not seen as immediate threats. The Bank is focused on balancing inflation and economic growth, with inflation expected to ease gradually. Employment growth remains sluggish, and the Bank anticipates continuing to lower interest rates if inflation trends align with projections.
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