JULY 27 2022 Crystal-ball gazing to predict the economic future can be a murky business. And some of the latest polling of Canadian economists shows just how opaque the view can be. The Globe and Mail surveyed 15 prominent Canadian economists about what, they think, is going to happen. There is general agreement that a […]

JULY 20 2022 Canadian Inflation Surged to 8.1% in June Another bad inflation number was posted today. The rate of consumer inflation continued to rise, reaching 8.1% year over year (y/y) in June, following the 7.7% gain in May. The increase was the largest yearly change since January 1983. The acceleration in June was mainly […]

With recent Bank of Canada interest rate hikes, and more on the way, here is what you need to know about how these policy changes affect your mortgage. First and foremost, the interest rate hikes directly affect individuals that currently have an adjustable-rate mortgage (ARM). Depending on your mortgage amount, you’re looking at a potential […]

JULY 15 2022 House Price Decline Accelerated in June Statistics released today by the Canadian Real Estate Association (CREA) show that the slowdown that began in March in response to higher interest rates has broadened. Home sales recorded over Canadian MLS® Systems fell by 5.6% between May and June 2022, taking second-quarter sales down sharply (see […]

JULY 13 2022 A Super-Sized Rate Hike, Signalling More To Come The Governing Council of the Bank of Canada raised its target for the overnight policy rate by a full percentage point to 2-1/2%. The Bank is also continuing its policy of quantitative tightening (QT), reducing its holdings of Government of Canada bonds, which puts […]

JUNE 15 2022 Housing Market Correction Gains Steam in May Statistics released today by the Canadian Real Estate Association (CREA) show that the slowdown that began in March in response to higher interest rates has broadened. In April, national home sales dropped by 12.6% monthly (m/m). National home sales fell by 8.6% between April and […]

JUNE 10 2022 Canadian Labour Market Is Much Too Tight–Adds To Inflation Pressure Today’s Labour Market Survey for May 2022 showed that hiring continued at a rapid pace last month in an increasingly tight labour market, driving the jobless rate to another record low and fueling a sharp acceleration in wage gains. The economy added […]

JUNE 1 2022 Another Jumbo Rate Hike, Signalling More To Come The Governing Council of the Bank of Canada raised the overnight policy rate by a full 50 basis points once again today, marking the third rate hike this year. The two back-to-back half-point increases are without precedent, but so were the dramatic pandemic rate […]

MAY 18 2022 Canadian Inflation Shows No Signs Of Abating Inflation at 6.8% is unmitigated bad news. The Bank of Canada looks flat-footed again, having forecast that Inflation would be at least a full percentage point lower by now. What’s worse, inflation looks likely to rise again this month given the surge in gasoline prices […]

MAY 17 2022 Canadian Housing Market Feels The Pinch of Higher Rates Statistics released yesterday by the Canadian Real Estate Association (CREA) show that the slowdown that began in March in response to higher interest rates has broadened. In April, national home sales dropped by 12.6% on a month-over-month (m/m) basis. The decline placed the […]