Canadian households briefly saw their debt issue shrink, but those days are long gone. According to Statistics Canada (Stat Can), the household debt to income ratio hit 186.23% in Q4 2021. The ratio had improved briefly as stores were closed and households paid down a little debt. The most recent update was massive though, reversing […]
Canadians are used to seeing their purchasing power vaporize, but not this fast. Statistics Canada (Stat Can) data shows annual growth for the consumer price index (CPI) hit 5.7% in February. The measure of inflation is at the highest level of growth since August 1991. Meanwhile shelter, one of the largest weights in the CPI […]
Canadians should prepare to pay a lot more to borrow for a mortgage, as easy credit comes to an end. The Government of Canada (GoC) 5-year bond yield reached 1.978% today, the highest level in well over a year. A booming economy and soaring inflation are driving yield expectations higher. As the GoC 5-year bond […]
Canadian real estate prices aren’t cooling against the threat of higher interest rates. Canadian Real Estate Association (CREA) data shows it did the opposite in February. Prices were already growing at a fast rate last year, and that rate has nearly doubled since. Loose policy disrupted the real estate cycle, pushing the market into uncharted […]
One of Canada’s largest banks just made the most aggressive interest rate forecast yet. Scotiabank now sees the Bank of Canada (BoC) overnight rate hitting 3.0% by next year. The bank acknowledges it’s an aggressive call, but it’s needed to control inflation. They feel the BoC kept rates too low for too long, and now […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Quantitative Sleaze: How The Bank Of Canada Mislead Politicians On Real Estate & QE The BoC Governor Macklem appeared before Parliament’s finance committee a few days ago. The head of the central bank explained quantitative ease (QE) doesn’t impact home prices. We […]
Canadians are still saving at an elevated rate, but it’s on the path to normalization — that’s a good thing. Statistics Canada (Stat Can) data shows the household savings rate fell to 6.4% in Q4 2021. The rate was 9% in the previous quarter and 11.4% in the same quarter last year. A shrinking savings […]
Oh. Snap. Canada’s central bank just threw monetary policy shade at the Government of Canada. The Bank of Canada (BoC) just released a new study called The Central Bank Strikes Back! Credibility of Monetary Policy under Fiscal Influence. In it, they examine how a central bank should react when pressured by the government. They argue […]
Canada’s central bank head piqued the interest of economists, and not because of his dazzling personality. Speaking to lawmakers, the Bank of Canada (BoC) Governor Tiff Macklem explained quantitative ease (QE) has no impact on housing. He further explained demand and the cost of housing determines mortgage demand. The statement was odd, not because he […]
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) […]
