Canada’s central bank has had researchers quietly studying bubbles overseas. The study, Bubbles, Crashes and Information Contagion In Large-Group Asset Market Experiments, appeared in the June issue of Experimental Economics. It was the centerfold issue, so obviously, I had to pick it up. In the study, Bank of Canada (BoC) researchers looked at the role […]
Canada’s largest bank now sees the US raising interest rates, and it’s a big positive for Canadian rate hikes. RBC senior economist Josh Nye said the bank sees the US hiking rates by next year. The hike will allow the Bank of Canada (BoC) to raise rates without a significant appreciation of the loonie. This […]
Canadian real estate prices just printed record growth across the country. Apparently it wasn’t enough, as households have increased their expectations for future growth. Bank of Canada (BoC) surveyed consumers on where they see home prices over the next 12 months. Conducted in Q2 2021, the survey found the highest forecast rate of growth in […]
Canada’s money printer is still going brrr at a rate not seen in decades, but it’s starting to slow down. Bank of Canada (BoC) data shows the rate of growth for the M2++ is now past its peak as of April. The broad measure of the country’s money supply is a leading indicator for inflation. […]
Remember that time the head of Canada’s central bank said the housing bubble was good for the economy? Soak it up, because that may be the last time it ever happens. The Bank of Canada (BoC) finished its technical report on the Terms-of-Trade Economic Model (ToTEM). The model, which is used by the BoC as […]
Canadians have no problem borrowing money, they just won’t do it for anything but a house. Bank of Canada (BoC) data shows household credit reached a new record high in April. The rate of growth was the fastest seen in nearly half a decade. Canadian housing mania has few people spending on anything but a […]
Inflation is transitory… or it may not be. It depends on whether the data is considered reliable enough that day. Bank of Canada (BoC) released a home price exuberance model, showing the market bubbles. Even more interesting is a footnote for the model they used. They feel inflation data on rent is unreliable, because it […]
Record Canadian real estate sales and cheap money has led to a boom in mortgage debt. Bank of Canada (BoC) data shows residential mortgage credit hit an all-time high in March. That isn’t surprising, since it hasn’t fallen in Canada for a very long time. The rate at which it’s increasing is simply mind-blowing though. […]
Canadian real estate prices have been on a tear, with a typical home now making more than the people inside of it. Still, a new model from the Bank of Canada (BoC) thinks that’s not bubbly, and is within their policy. The central bank’s Q1 2021 numbers show only three real estate markets are exuberant. […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Only Canada’s Top 5% Of Households Could Qualify For A Mortgage On A Home: NBC Canadian home prices are rising so quickly, very few people could qualify for a typical home. The minimum qualifying income in the country reached $130,921 for […]
