The point of extreme rate increases wasn't to crush the CRE investment market, it was to control price increases that were completely out of hand. So far, the results are looking good, even with the "pause" the last two announcements. Remember this doesn't mean prices are dropping, just that the rate of increase is slowing. Even Statistics Canada notes that prices are "elevated" and that compared to late 2021, consumer prices are +9% across the board.
OK so let the rate cuts begin! Hold on, I don't think we're there yet. While 4.3% is a big improvement, it's still well above the "target" inflation rate. We need to make sure inflation continues to drop. Secondly, inflation isn't evenly distributed, and it seems to be very "sticky" in the non-negotiable areas. While many spending categories have moved into the Bank's target range of 1-3%, that food number is alarming. Does the Bank of Canada see that as a problem that merits further increases? Or is it a small consideration compared to the effects on the investment side of the economy? I don't know, and I'm not sure anyone outside the government does.