Greetings ALL
It is a new school year but the world has not yet decided that it is ready to do great things again. I cannot help but think that the West's reluctance to go to war again, while not a bad choice, because most wars don't solve problems, it does mean continued uncertainty on how to stop a massive ego on one front and "medieval mayhem" on the other. (Modern politics is far from simple.) Harper's reluctance to spend his vote getting pot of money supporting Canada's allies with increased military spending is either a good idea, or a bad one, depending on how big a view you take of all the events going on. As with anything big, history and the victors will decide the true value of these choices.
In the meantime, on the homefront it is still good news for borrowers. With a chance to get 2.79% 5 year fixed mortgage, the BoC announcement is reaffirming for home buyers. They have time.
Things are going as the Bank of Canada expected, economically speaking, which is why the target for the overnight rate is still sitting at 1%.
The Bank announced on Wednesday that, with the global economy performing largely as expected and Canadian inflation settling down again, there doesn't seem to be a need to increase interest rates-for now.
Stronger growth in the second quarter-due largely to surging exports-has brought the GDP almost exactly to the point the Bank projected in July. The housing market continues to perform stronger than expected, but so far it hasn't impacted inflation enough to warrant higher interest rates.
For now, risks contributing to the increase of inflation seem to be balanced, which is why the Bank ultimately decided to stand pat. But it's not making any promises going forward, however, as it says only time will tell what the global and Canadian economies will look like heading into the October 22 announcement.
If you're wondering how this announcement affects your specific situation-or if you have questions about variable mortgages, locking in or anything else mortgage-related—feel free to drop me a line. I'd love to chat! 416.486.1113
Showing posts with label Economics summary plus. Show all posts
Showing posts with label Economics summary plus. Show all posts
Thursday, September 4, 2014
Friday, April 30, 2010
From the Newsletter - April
Tax deadlines are now down to hours for many people, I hope you are not one of them. It would be tough to be working on taxes on such a wonderful day. The kids are outside more now so watch out when you are driving, and it may be time to find out if your sunscreen is still any good or if you need to get some more.
I have booked our spring camping and will soon have to actually organize "the stuff."
I was at a short seminar on the HST and it seems to me that this is a great opportunity for businesses to keep prices stable while getting some tax breaks and actually making the clients pay more. I am thinking of contractors in particular, so I suggest if you are hiring anyone for work being done after 1 July that you get them to rethink their before tax quote.
On the rate front the markets are clearly anticipating the Bank of Canada raising rates, so we have seen several jumps in the last month or so.
I also went to a seminar last week with a Benjamin Tal speaking, I like his take on this generally. the sad news was that he does not think the signs of recovery in the US are anything solid, and that Stimulus spending is still holding things together, and that banks are holding on to foreclosed properties to prevent a flood on the market. He commented on the commercial real estate crisis in the US and said it will have a much smaller impact that others have intimated.
In the US manufacturing sector the improvements have all been capital related with very little impact on job recovery, which means consumers will not be strong enough to take up the slack when stimulus ends.
He also commented on the strength of China, but noted that if China slowed down then the demand for commodities would drop which would affect Canada.
Canadian recovery is slowing and people turning to self employment has helped the job figures. From a market perspective there is apparently some $120 billion in cash sitting around looking for somewhere to go that would give their owners good returns, and given that much of it is held by boomers they will lean to conservative and dividend forms of investment.
Mr. Tal expects a 50 bps hike in June/July then possibly another 100 bps before they stop and wait for the US to start raising rates in 2011.
The days of US as the key economic player are gradually diminshing. The rate information and news items will come in below.
If you want to learn more about the effects of the new rules that came into play this month please contact me or check out some links at CMHC.
I have booked our spring camping and will soon have to actually organize "the stuff."
I was at a short seminar on the HST and it seems to me that this is a great opportunity for businesses to keep prices stable while getting some tax breaks and actually making the clients pay more. I am thinking of contractors in particular, so I suggest if you are hiring anyone for work being done after 1 July that you get them to rethink their before tax quote.
On the rate front the markets are clearly anticipating the Bank of Canada raising rates, so we have seen several jumps in the last month or so.
I also went to a seminar last week with a Benjamin Tal speaking, I like his take on this generally. the sad news was that he does not think the signs of recovery in the US are anything solid, and that Stimulus spending is still holding things together, and that banks are holding on to foreclosed properties to prevent a flood on the market. He commented on the commercial real estate crisis in the US and said it will have a much smaller impact that others have intimated.
In the US manufacturing sector the improvements have all been capital related with very little impact on job recovery, which means consumers will not be strong enough to take up the slack when stimulus ends.
He also commented on the strength of China, but noted that if China slowed down then the demand for commodities would drop which would affect Canada.
Canadian recovery is slowing and people turning to self employment has helped the job figures. From a market perspective there is apparently some $120 billion in cash sitting around looking for somewhere to go that would give their owners good returns, and given that much of it is held by boomers they will lean to conservative and dividend forms of investment.
Mr. Tal expects a 50 bps hike in June/July then possibly another 100 bps before they stop and wait for the US to start raising rates in 2011.
The days of US as the key economic player are gradually diminshing. The rate information and news items will come in below.
If you want to learn more about the effects of the new rules that came into play this month please contact me or check out some links at CMHC.
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