RSS

The Bank of Canada once again opted to hold its target for the overnight rate at 1 per cent this morning. Interest rates have been held constant for over two years, the longest such period since the 1950s. The Bank somewhat tempered its bias for higher future interest rates, including a softer statement regarding the appropriateness of a gradual withdrawal of monetary stimulus as excess supply in the economy is absorbed. In a bit of a surprise, the Bank actually raised its forecast for the growth in the Canadian economy this year to 2.2 per cent, but kept its 2013 forecast at 2.3 per cent growth. The Bank judges that at that pace of growth, the Canadian economy will return to full capacity by the end of 2013.

 

It is our view that monetary policy at the Bank of Canada will continue to be constrained by external events in the global economy and household debt growth at home. While the Bank's preference for tighter policy is clear, it is difficult to make a case for higher interest rates when core inflation is below the Bank's 2 per cent target and already slow economic growth is threatened by global uncertainty. Therefore, we are forecasting that the Bank of Canada will hold its target overnight rate at 1 per cent until mid-to-late 2013 when, conditioned on an improved global economic outlook, it may test the water with a 25 basis point rate increase.

Read
Categories:   Buying | Carpet | city of vancouver property tax | College | Condos | Football | Freehold | freehold townhouse | home selling tips | Homes | Houses | Kitsilano | Kitsilano Condo Prices Chart | Kitsilano Condos | Kitsilano House Prices Chart | Kitsilano Townhouse | Leasehold | leasehold prepaid-nonstrata | leasehold prepaid-strata | Luxury Real Estate | Mortgage | Moving | New Listing | ownership | Quarterback | Real Estate | REBGV | REBGV Stats | Renovations | school catchment | sellers | Selling | selling your home, safety | Social Media | strata property act | student housing, ubc, investment | Student Rentals | Summer | Summer Programs | Tips | Townhouse | Ubc | ubc realtor | ubc realtor, UBC homes, UBC real estate | UBC Apartment | UBC Average Sold Price | UBC Chancellor Place | ubc community | Ubc condo | UBC Condo Strata | UBC Condos | UBC East Campus | ubc events | UBC Farm | UBC golf | UBC Hampton Place | UBC Hawthorn Place | UBC Homes | ubc homes, ubc real estate | ubc homes, ubc real estate, spring break, vancouver events 2014 | ubc hospital | UBC House Prices Chart | ubc housing | UBC Programs | UBC Properties Trust | ubc real estate | UBC real estate mortgage | UBC real estate, UBC homes, Halloween in Point Grey | UBC real estate, UBC homes, UBC Realtor | UBC real estate, UBC homes, UBC Realtor, Moving to UBC | UBC real estate, UBC homes, UBC Realty, Toys stores, UBC, Point Grey | UBC real estate, UBC Realtor | UBC real estate, UBC Realtor, UBC attractions | UBC real estate, UBC realtor, UBC events | UBC real estate, UBC Realtor, UBC Food Truck | ubc real estate, ubc realtor, ubc realty | UBC Realtor | UBC Realtor, UBC Homes, UBC Real Estate, UBC Christmas Events | UBC realtor, UBC real estate, UBC events | UBC Realty | UBC Rural Tax | UBC schools | UBC Services Levy | UBC Townhouse Prices Chart | UBC Townhouses | ubc triathlon, ubc real estate, ubc homes | UBC Wesbrook Vilage | UBC Wesbrook Village | UBC Wesbrook Village, UBC, real estate, homes | Vancouver | Vancouver Condo Prices Chart | Vancouver Home | Vancouver House Prices Chart | Vancouver Real Estate | Vancouver Townhouse Prices Chart | Virtural Tour | what does freehold mean
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.