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BoC rate announced

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Justin da Rosa | 19 Oct 2016, 10:36 AM Agree 0
The Central Bank announced its overnight rate target Wednesday
  • Kris Kooblall | 19 Oct 2016, 10:58 AM Agree 0
    Canada's National Housing Crisis

    We are in a national housing crisis and all hands needs to be on deck to bring this back to where it needs to be.

    The Bank of Canada has just released their report today at 10:00 a.m EST on maintaining the overnight lending rate and their Monetary Policy Report.

    Given the relatively very modest growth levels on the U.S, Canadian, European, U.K with regard to the economic outlook generally, the expectation is that there are no huge and significant increases expected anywhere in these markets within the next few years.

    The BOC in their Monetary Report today has said:

    Residential investment was strong in the first half of 2016, particularly in
    the housing markets in British Columbia and Ontario. A slowdown in resale
    activity in British Columbia that began in May intensified in August. An
    additional property transfer tax for foreign buyers in the Greater Vancouver
    Regional District was also introduced in August. Nonetheless, prices in
    Vancouver remain elevated, and resale activity and housing starts continue
    to be robust in the Greater Toronto Area. The recently announced federal
    measures to promote stability in the housing market are expected to lead to
    weaker resale activity in the near term and a modest change in the composition
    of residential construction toward smaller units.

    The initial indications are that the BOC may, in fact, look towards revising the overnight lending rate on December 7th, downwards as the recent sweeping changes by the Federal Government in the real estate and mortgage industries may placate some of the risks of a potential downturn in the economy.

    Let us focus our attention on getting our housing crisis in perspective and completely solved with the provinces and municipalities getting on board with the federal government.
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