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Rosenberg Says BoC Cuts Fail to Reignite Housing, Sees More Easing Ahead

BY MT Newswires | ECONOMIC | 09/30/25 11:23 AM EDT

11:23 AM EDT, 09/30/2025 (MT Newswires) -- When the Bank of Canada began cutting rates in summer 2024, the prevailing view was that it would reignite a housing frenzy, Rosenberg Research said.

"That has not happened at all," noted Rosenberg Research.

The BoC has taken the policy rate from 5.0% to 2.5%, but housing starts and home sales have gone nowhere, stated Rosenberg. Virtually flat, it added.

The same for residential building permits, which are actually down fractionally. Home prices are down to a three-year low.

Now that the tariff inflation threat has receded, Canada's central bank should switch its focus to housing sector deflation and its ramifications, added Rosenberg. Rates have gone down a lot, true, but they need to come down more.

Rosenberg recommends sticking with a bull steepener in bonds and a weaker Canadian dollar ((CAD or loonie).

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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