Canada and the US both reported the highest inflation in decades, but they have different takes on tackling it. In recent days, the Bank of Canada (BoC) softened its stance on rate hikes, blaming transitory issues. Meanwhile, the US Federal Reserve has become more aggressive, calling an inflationary shock. Both countries are expected to raise […]
Canada is shying away from its image as a petro-state, but its economy is moving in the other direction. BMO Capital Markets’ latest research note looks at Canada’s merchandise trade balance for 2021. Canada produced its first surplus since 2014, way back when oil was above $100 barrel. That’s not a coincidence, with energy prices […]
Canada’s major real estate markets are seeing price growth slow — the rate was just really high. Statistics Canada (Stat Can) updated its Residential Property Price Index (RPPI) for Q4 2021. The six-city index didn’t grow fast enough to prevent annual growth deceleration, though. Growth remains high, but it’s finally beginning to slow — except […]
Canada is preparing to tighten interest rates with the US, but it will encounter some hurdles. That’s the take from Jimmy Jean, Chief Economist at Desjardins. In a note to clients today, the economist said he expects Canada to start rate hikes with the US. However, the country won’t be able to keep up as […]
Canada’s economy is beginning to normalize, including the number of businesses filing for insolvency. According to Office of the Superintendent of Bankruptcy (OSB) data, business insolvencies remain lower than pre-pandemic levels. Though in Q4 2021, there’s been a sudden surge of filings making up for lost time, rising at the fastest rate in 36 years. […]
As public health restrictions linger, more companies realize they don’t need office space. Statistics Canada (Stat Can) data shows new public health restrictions had more people work from home in January. Nearly a quarter of labor now permanently works from home, with that share rising sharply in big cities. The shift can change cities from […]
Canada’s oldest bank sees today’s real estate markets having a lot in common with the late 1980s bubble. In a research note to its financial markets customers, the Bank of Montreal (BMO) highlights the similar trajectory homes have made. A similar event that slowed home price growth during that period is approaching — higher interest […]
A leading indicator of future building is flashing big growth, but there’s a catch. Statistics Canada (Stat Can) data shows a huge climb for building permit values in 2021. Values climbed by over a quarter, one of the largest increases in history. Unfortunately, the national statistics agency attributes two-thirds of the growth in value to […]
Canadian real estate demand is soaring, and it has builders very excited. The Canadian Home Builders’ Association (CHBA) updated its Housing Market Index, this week. The index, a leading indicator of builder sentiment, reached a new record in Q4 2021. While the index only goes back a year or so, the abrupt climb was a […]
Canadians are borrowing mortgage debt at one of the most rapid rates in history, and with good reason. Bank of Canada (BoC) data shows borrowers were getting rock bottom rates in November. The rates are actually so low, they’re now way below inflation. Canada now has negative real mortgage rates, which are as close to […]
