Canada’s historic household debt levels will almost certainly affect banks and the GDP, according to a long-time markets observer.
Household income growth is grinding to a halt in Canada, and that’s bad news for future economic growth as a whole and the housing market in particular, suggests a recent report from Desjardins Economics.
Bank of Canada won’t hike mortgage-influencing policy rate ‘by much and not anytime soon,’ says economist
The unexpectedly weak Canadian housing market is one factor making it likely Bank of Canada Governor Stephen Poloz will take a less aggressive approach to interest rates this year, notes an economist with one of the country’s biggest banks.
The Bank of Canada has stepped to the sidelines since it last hiked the overnight rate, which influences rates on the mortgage market, this past October.
“For now, as we expect the Bank’s forecasts to be… more upbeat than our own, we would not be surprised if the Bank of Canada continues to argue that it needs to raise interest rates,” reads a Capital Economics Bank of Canada Watch
Canada’s steady trend of economic strength might justify even further hikes in the BoC’s interest rates, according to observers. The latest set of economic numbers
Canada’s economy is adjusting well to higher borrowing rates and tighter mortgage lending restriction. That was one of the key messages from the Bank of