Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Bank Of Canada Announces QT, Reverse Of The Program That Boosted Real Estate Prices Canada’s central bank is letting the public know they plan to tighten credit in the country further. The Bank of Canada (BoC) explained that quantitative tightening (QT) […]
Real estate investors were cautioned that risk happens fast, from Canada’s oldest bank. BMO Capital Markets warned clients to expect the housing market to “be tested.” Higher interest rates and the end of “too loose” policy are expected to cool price growth. In frothy real estate markets, sentiment can shift very fast when prices slow, […]
Canada’s central bank finally acknowledged inflation is a monetary policy issue. Bank of Canada (BoC) governor Macklem dumped the transitory inflation narrative today. In a speech to Toronto’s CFA Society, he explained rising interest rates are just one monetary policy tool they’ll use going forward. The other is quantitative tightening (QT), a program designed to […]
Canada’s central bank made its first interest rate hike since slashing it down to nearly nothing. The Bank of Canada (BoC) announced it will raise the overnight rate today, marking a path to rate normalization. Today’s hike was widely expected, and the first of many that are forecast over the next two years. Rising rates […]
Canadian household budgets aren’t just getting hit by inflation — they’re taking home less too. Statistics Canada (Stat Can) data shows household disposable income contracted in Q4 2021. This is the second consecutive quarter disposable income dropped, and it’s been a significant decline from the peak. Not great, but expected as the economy improved and […]
Canada’s central bank is overwhelmingly expected to hike interest rates aggressively. We polled the country’s top finance experts for their overnight rate forecast. Nearly all expect the Bank of Canada (BoC) to hike rates tomorrow. They don’t see the rate hikes ending there, though. Over the next year, they see interest rates rising aggressively to […]
Canadian mortgage borrowers still in the market aren’t worried about higher interest rates, apparently. Bank of Canada (BoC) data shows new mortgage loan annual growth was negative in December. The majority of the remaining activity was issued with variable interest rates. It might not be obvious, but variable mortgage costs are essentially a bearish bet […]
Time For your cheat sheet on this week’s most important stories. Canadian Real Estate Canadian Real Estate Bubble Sentiment Is Collapsing Fast: US Federal Reserve Data Canadian real estate bubble sentiment is collapsing but remains frothy. A US Federal Reserve model shows Q3 2021 was the 26th quarter the market showed exuberance. That means the […]
Global markets are puking as the Ukraine-Russia conflict presents global uncertainty and risk. BMO chief economist Douglas Porter wrote a special brief to clients today, explaining this doesn’t change much at this point. BMO still expects the Bank of Canada (BoC) and the US Federal Reserve to hike interest rates in March. The influence on […]
Expectations for higher inflation in Canada are rising as it spreads to more components. BMO Capital Markets’ latest forecast contained upward revisions for the consumer price index (CPI). The measure of inflation is expected to rise faster this year as the commodity prices soar. The gap between the Bank of Canada (BoC) forecast and BMO […]
