07/21/2022
- Is inflation nearing a peak? Some economists think so (Canadian Mortgage Trends)
In June, the Consumer Price Index (CPI) accelerated to an annual rate of 8.1%—its highest level since 1983—and up from 7.7% in May. Gas prices were the main driver, rising 6.2% month-over-month, according to Statistics Canada data.
- Consumers need to understand loan-to-value risk when house prices drop: Real estate finance expert (BNN Bloomberg)
Diana Mok, associate professor in Management and Organizational Studies at Western University, joins BNN Bloomberg to discuss how rising rates are creating ripple effects in the household budget. She says when home prices drop, consumers may end up owing more than the value of the asset, which can impact their ability to obtain future credit.
- Feds shouldn't add 'fuel to the fire' as inflation soars: David Dodge (BNN Bloomberg)
ECONOMICS
Jul 19, 2022
The federal government needs to “postpone some of the expenditure enhancements” from the last budget in order to help get inflation back under control, according to former Bank of Canada Governor David Dodge.
- Cooling housing market shows short supply didn’t fuel COVID price surge: BMO economist (Global News)
The Canada Mortgage and Housing Corp. (CMHC) released a report in June projecting that, when it comes to the goal of affordable homes for all residents, Canada will be short 3.5 million units by 2030.
- Home buyers expected to sacrifice more (Global News)
- Despite growing recession fears, Canada has the brightest economic outlook for 2022 (Wealth Professional)
“We still believe that Canada will be a resilient economy because it is a net energy exporter,” Bilal Hasanjee, Vanguard Canada’s senior investment strategist told Wealth Professional while sharing Vanguard’s Midyear Economic and Market Outlook. “It’s in a better situation than most countries going into this because of the higher oil and gas prices.
“The Bank of Canada, as we saw last week, is looking to front-load the overnight rate as it increases interest rates. We’re seeing they’re going to take the neutral rate to the level of about 3% by the end of 2022. It might go slightly higher than 3%, but definitely 3%.”
