Canada continues to be affected by a dampened outlook on the global economy as the Bank of Canada announced today that it would hold its rate due to lower-than expected economic growth since its April report.
Recent finance headlines are full of news on the Barclays Libor scandal. For those not familiar with the global interbank lending interest rate, the news puts into question the validity of trillions of dollars in loans granted between 2006 and 2008. Will Canadian finances be affected? If their bank used this benchmark rate to trade with international financial institutions during this time period, they very well could be.
The days of 30-year high ratio mortgages are over as the mortgage rule changes announced June 21st by the Department of Finance go live today. While the changes have been put in place to cool an overly aggressive housing market and curtail Canadians’ debt to income ratio levels, it’s the short term implications that have everyone from first time home buyers to brokers wondering – what’s it going to cost?
After two months of virtually no growth, Canada’s job market came roaring back in March with 82,300 new jobs created. So what does this mean for Canada’s economy? For the short term it shows things are improving. But don’t expect this to last.
On Monday Statistics Canada reported the Canadian economy grew more than expected in August. Real GDP rose 0.3 per cent. Economists were expecting 0.2 per cent. I know, not exactly blowing past expectations, but better than expected is nicer than the alternative. But there are still a number of head winds that Canada is facing that make the third quarter results harder to predict.
It was no surprise this morning when the Bank of Canada announced that they would maintain their Key Overnight Lending Rate at 1.0 percent. The Bank of Canada highlighted a number of reasons for keeping interest rates low.
It’s a promise from Ben Bernanke. He will leave interest rates near 0 percent until at least 2013. For the first time ever, the head of the Federal Reserves admits the U.S. economic recovery has stalled and he will do anything to get it started again. The world order has changed dramatically in the last seven days. This is what’s happening.
Last week I was asked to do an interview for CBC the National to talk about the US Debt Crisis and how it is affecting the Canadian economy. It’s a well-known fact that the Canadian economy is closely tied to that of the US. Plus we’re already starting to feel the pinch here – higher …
Have you seen how strong our Loonie is? Currently it’s trading at a multi-year high against the weakening U.S. greenback. One Canadian dollar gets you about $1.06 U.S. WOW! But, it also means more pain for Canadian businesses trying to sell goods and services outside of the country.
The CMHC released their latest Canadian housing market update, called Housing Now, in December 2008 and it includes great info on the state of the Canadian housing market as of Q3 2008. In brief housing starts declined, house prices and residential mortgage credit were actually up, with house sales declining. This is despite the fact …