Another big policy announcement to come this week from the Bank of Canada and there are a few recent data points that don’t help the case for no increase to the Bank of Canada’s policy rate (which stands at 3.75%):
1) Jobs added in October (and another 10,000 jobs added in November)
2) CPI data going flat since September (7.0-6.9%)
3) Unemployment rate dropped to 5.1 percent
4) Year-over-year increases in average hourly wages have increased by more than 5% for the 6th consecutive month
5) Latest GDP numbers at 2.9% were above BoC expectations
On a positive note, 5 year bond yields have pulled back and fixed mortgage rates should see declines. Canadian Real Estate is in a tough position and if interest rates go higher we could see continued declines in canadian home prices/home prices canada.
