Hot inflation sets Bank of Canada on course for another oversized rate hike carmichaelkevin — via financialpost Canada inflation economy
Some Bay Street economists were predicting even faster inflation. It might be too soon to say for sure, but the rapid cooling of the housing market could be offsetting inflationary pressures elsewhere. Statistics Canada’s index of shelter costs increased 7.1 per cent in June, slower than the 7.4 per cent in May. The agency observed that real-estate agents are collecting lower commissions because prices have dropped.
In the near term, higher interest rates could exert upward pressure on shelter costs because mortgages will be rising. However, if home prices continue to fall, “this could lead higher rates to more quickly dampen high inflation in Canada relative to the U.S.,” Veronica Clark, an economist at Citigroup Global Markets Inc., said in a note to her clients. “This is a fundamental reason why we still think policy rates could reach a slightly lower terminal level in Canada than in the U.S.
Another sign that inflation could be peaking is a deceleration in the pace of increases from month to month. The consumer price index rose 0.7 per cent from May, considerably slower than the previous monthly increase of 1.4 per cent. Commodity prices are finally responding to gravity, and that could ripple through the cost of finished goods in the months ahead.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hot inflation sets Bank of Canada on course for another oversized rate hikeCanada\u0027s inflation rate surged to 8.1 per cent in June, the biggest year\u002Dover\u002Dyear increase since January 1983. Here\u0027s what you need to know
Read more »
Hot inflation sets Bank of Canada on course for another oversized rate hikeCanada\u0027s inflation rate surged to 8.1 per cent in June, the biggest year\u002Dover\u002Dyear increase since January 1983. Here\u0027s what you need to know
Read more »
Hot inflation sets Bank of Canada on course for another oversized rate hikeCanada\u0027s inflation rate surged to 8.1 per cent in June, the biggest year\u002Dover\u002Dyear increase since January 1983. Here\u0027s what you need to know
Read more »
Bank of Canada Rate Hike 'Takes a Hammer to Housing': BMOAlthough 4.5% mortgage rates are still historically low compared to the double-digit rates seen at the tail end of the '80s boom, it's the rapid change that matters, a new BMO Economics report says 🔨 interestrates bankofcanada realestatenews
Read more »
Opinion | Summertime blues in Toronto the HotOpinion: Our cities and towns are not prepared for extreme heat, nor for floods or fire. Again one has the impression that there are no plans should catastrophe occur, HeatherMallick writes.
Read more »
Toronto to see hot, humid and rainy weather this weekEnvironment Canada says Toronto should expect showers until late Wednesday, with day time temperatures hovering around 30 C most of the week.
Read more »