Equity Refinance Mortgage Loans Canada - Equity Mortgage Loans Canada - Second Mortgage Loans Canada
Mortgage Loans Canada, Mortgage Refinance Canada, Equity Mortgage Loans CanadaOnline Mortgage Application Form Instant Mortgage Approval 1-866-573-3122 24 HOUR CUSTOMER SERVICEEQUITY REFINANCE MORTGAGE LOANS CANADA BLOGMortgage Canada Buying and selling a home cheat sheetMortgage Canada Words To Know When Buying A HomeImportant Mortgage Websites linksMortgage Canada Basics - Mortgage Canada GuideMortgage Canada CMHC Newcomers to Canada Buying your First HomeMortgage Canada CMHC Home Buying Step By StepMortgage Canada CMHC Condominium Buyers GuideMortgage Canada Compare all Canadian Credit CardsHow Credit Effects Your Canadian MortgageMortgage Canada CMHC Housing Market Outlook Canada Edition Page 1Mortgage Calculator - Mortgage calculators allow you to make informed mortgage decisions
Equity Refinance Mortgage Loans Canada, Home Equity Unlocking, 1st & 2nd Mortgages, Your Mortgage Experts. My right Mortgage, INSTANT APPROVAL 24/7 CUSTOMER SERVICE FAST MORTGAGE PAYOUTS IN CANADA HIGHEST MORTGAGE APPROVAL RATE IN CANADA 1-866-573-3122

HOME BUYING, BUYING YOUR FIRST HOME & INFORMATION FOR SEASONED HOMEBUYERS
FINANCIAL CONSUMER AGENCY OF CANADA
CANADIAN ECONOMY NEWS
MORTGAGE BROKER NEWS
October, 2015
November, 2015
December, 2015
January, 2016

BoC prediction is a double-edged sword for brokers

The Bank of Canada expects inflation to hit its 2% mark in mid-2017, which would put an end to economic stimulus. But growing mortgage and household debt may speed up the move.


BoC prediction is a double-edged sword for brokers

 
The Bank of Canada expects inflation to hit its 2% mark in mid-2017, which would put an end to economic stimulus. But growing mortgage and household debt may speed up the move.

“Vulnerabilities in the household sector are continuing to edge higher,” the Bank of Canada said Wednesday in a Monetary Policy Report outlining the threat that poses. “Persistent strength in household spending would provide a near-term boost to economic activity, but it would also further exacerbate existing imbalances … increasing the likelihood and potential severity of a correction later on.”

Brokers, of course, want to avoid that kind of downturn in home prices and are rooting for a strengthened economy. Still, the trade-off of meeting any inflation target would put an end to economic stimulus and record-low rates.

According to the Bank, the most likely scenario is that these imbalances soften as the economy improves but that “a disorderly unwinding, such as one that might be triggered by further weakness in the resource sector or a rapid rise in global interest rates, could have sizable negative effects on the economy.”

Other threats to inflation – and the Canadian economy improving to the point of allowing for an increase in rates – include weaker Canadian exports and investment, higher non-energy commodity prices, stronger U.S. private demand, and market stress coming from emerging markets.

However, assuming that further imbalances in the housing sector – and the other threats to inflation – are avoided, the Bank expects the economy to stabilize by mid-2017.

“Once the economy reaches and stabilizes at full capacity around mid-2017, total CPI inflation and core inflation will remain at 2%on a sustained basis,” the Bank said. “Medium-term inflation expectations continue to be well anchored at 2%.”
<< Back Add New Comment
0 items total
Add New Comment
Name*
Subject*
Comment*
Please type the confirmation code you see on the image*
Reload image

Powered by 4GoodHosting