Thank you Dr Cooper for the breakdown 🙂   US Policymakers Take Emergency Action To Protect Depositors At Failed Banks Silicon Valley Bank (SVP) had a sterling reputation among the many tech start-ups it helped to finance. What brought SVB down was an old-fashioned bank run set off in 2021 by a series of bad […]

No Surprises Here: The Bank of Canada Hiked Rates By Only 25 bps, Signalling a Pause As expected, the Bank of Canada–satisfied with the sharp decline in recent inflation pressure–raised the policy rate by only 25 bps to 4.5%. Forecasting that inflation will return to roughly 3.0% later this year and to the target of […]

Thank you to our preferred lender, First National, for this insight into 2023 interest rate projections Jan 9, 2023 First National Financial LP A lot of the recent talk in financial and real estate circles has been centering on the possibility of a pause in the Bank of Canada’s aggressive interest rate increases.  Some speculate […]

Thank you to our Preferred Lenders at First National!    Residential Mortgage Commentary – Inflation report offers hope of interest rate relief The latest Statistics Canada inflation numbers have given some market watchers hope that the Bank of Canada will slow or, perhaps, even pause interest rate increases. The Consumer Price Index, or “headline inflation”, […]

Housing Correction Continued In October   Statistics released today by the Canadian Real Estate Association (CREA) show home sales were up 1.3% on a month-over-month basis in October. Still, monthly activity remained a whopping 36% below the October pace in 2021. The housing correction continues in response to the Bank of Canada’s massive rate hikes, […]

Thank you to our Partners at First National for the below insight! Residential Mortgage Commentary – Bank of Canada signals a slowdown Oct 31, 2022 The Bank of Canada has pushed interest rates up again, but the increase came in at the lower end of expectations. The Policy Rate rose by one-half of a percentage […]

Thank you to our Chief Economist, Dr Sherry Cooper for the below.  HOWEVER, I’m curious how effective increasing Prime Rate is on reducing inflation if the Federal Government continues its spending and printing of money ……. that might be the real question we should be asking?   Bank of Canada Will Not Be Happy With […]

Thank you to our Chief Economist, Dr Sherrry Cooper, for this insight!   Forty-Three Years Ago, I Was Fed Chair Paul Volcker’s Special Assistant Inflation appears to be book-ending my career. I started my work as an economist in the Research Division of the Federal Reserve Board in Washington, D.C., in the late 1970s. Inflation […]

Orderly Housing Correction Continues There are many unusual aspects to the current housing correction, but fundamentally the most noteworthy is how orderly and non-chaotic it has been. Home sales have slowed, but so have new listings, so the price declines are more muted than we might have expected. This is not a housing collapse. It […]

Job Market Weakens As Economy Slows The August employment report, released this morning by Statistics Canada, was considerably weaker than expected. Higher interest rates have slowed the red-hot labour market. The Canadian economy shed 39,700  jobs in August, missing market expectations of a 15,000 rise and bringing cumulative declines since May 2022 to 113,500 (see chart below). […]