As expected, the Bank of Canada held its overnight rate at 1 per cent at its March 1st meeting. In the absence of nascent geo-political risk and the soaring loonie, the stronger than expected pace of economic growth may have alone been enough to push the Bank to raise rates at its next meeting in April. However, the risk posed to the global economy by a still evolving situation in the MENA region... read more.
Sentiment about the US economic outlook has improved dramatically in the two months since our last forecast. This is very good news for the Canadian economy and also very good timing as the economy is likely to face some headwinds in 2011 from potential consumer restraint, exchange rate pressure on exports and slowing residential construction. However, the increasingly positive economic outlook is... read more.
Mortgage rates have thus far evolved in-line with our December 2010 forecast, with the 5-year fixed rate reaching 5.44 per cent and the 1-year rate hitting 3.50 per cent in mid–February. Mortgage spreads (the difference between a fixed mortgage rate and the yield on Government of Canada bonds) have returned to historically normal levels and we expect these spreads to remain fairly stable in subseq... read more.
Canada’s hot housing market should cool down somewhat this year, according to a new report from BMO Capital Markets, which says the kind of correction some observers have been warning about is unlikely — though not impossible, given the right circumstances.
The question of a correction comes down to whether increases in household incomes can keep up with rising home prices. If price rises outpace i... read more.
Richmond and Vancouver's west side housing markets are red hot, according to a monthly real estate report released Wednesday.
“It’s a huge sellers’ market, the strongest in those areas I’ve ever seen,” Real Estate Board of Greater Vancouver president Jake Moldowan said in an interview. “And there’s no question that it’s the offshore market that’s focused on these two areas.”
According to reports by... read more.
Today the Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent.
The global economic recovery is proceeding broadly in line with the Bank’s expectation, although risks remain elevated. U.S. activity is solidifying and remains supported by stimulative fiscal and monetary policies. The pace of the European economic recovery is buoyed down by the state o... read more.