Bank of Canada researchers argue in favour of inflation overshoots following recessions

[Globe and Mail - July 28, 2021] Central bankers should let inflation run temporarily above target when the economy is coming out of a severe recession, according to new Bank of Canada research that provides a window into how the central bank is thinking about inflation as the pandemic wanes. The paper, published last week by three senior bank economists, argues that monetary policy should allow inflation to rise above the bank’s 2-per-cent target following major recessions where interest rates hit [...]

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A new wave of buyers expected to hit B.C. real estate market

[The Globe and Mail - July 2, 2021] Throughout the pandemic, home sales soared, and in some markets, set record prices. Industry insiders say that postpandemic, the B.C. housing market is expected to boom again – driven by Canadians returning home and the federal government’s plan to bring in more than 1.2 million immigrants by 2023. The wave is already happening according to Jacky Chan, president of BakerWest Real Estate Inc., who works closely with developers. BakerWest is the new Vancouver [...]

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Bank of Canada keeps benchmark rate at record low but economic outlook brightens

Bank forecasting a 6.5% increase in GDP growth in 2021, up from 4% [CBC - April 21, 2021] The Bank of Canada opted to keep its benchmark interest rate steady at a record-low 0.25 per cent Wednesday, saying the pandemic recovery "continues to require extraordinary monetary policy support." At the same time, it significantly increased its growth estimates, forecasting a 6.5 per cent increase this year, up from an earlier prediction of four per cent. The bank said in a statement that it intends to [...]

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Today’s hot Vancouver housing market may be just a prelude

[Globe and Mail - March 19, 2021] One year after the pandemic began, and despite initial worries, it turned out to be one of the real-estate industry’s best years. “There are bidding wars on many homes throughout the Lower Mainland, on the Island, and even in the Kootenays,” says Rudy Nielsen, an industry veteran who owns Landcor Data Corporation, Niho Land & Cattle Company and LandQuest Realty Corp. “Realtors, mortgage brokers, mortgage lenders, have never been busier and are making a [...]

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B.C. economy set to grow in 2021, 2022, forecast suggests

[News 1130 - February 25, 2021] VANCOUVER (NEWS 1130) – B.C.’s economy is looking up — at least for now — according to a new forecast. Central 1 suggests the provincial economy is going to grow by 4.2 per cent this year and by 4.5 per cent in 2022. Exports and the demand for housing are expected to be the main drivers as economies around the world bounce back from the impacts of the COVID-19 pandemic. Vaccine rollout and development are also [...]

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B.C. to extend rent freeze to end of 2021, increase protections against ‘renovictions’

[CBC - March 1, 2021] NDP government says it's meeting recommendations from a 2018 task force on rental issues The British Columbia government says it will introduce legislative changes to extend a rent freeze through to the end of this year to stop illegal "renovictions" and improve the dispute resolution process for tenants and landlords. The province has already introduced and extended a rent freeze during the COVID-19 pandemic, and it says in a news release Monday that new legislative changes will keep it in [...]

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Despite the botched vaccine rollout, the Canadian economy is on the ‘cusp of a boom’

[Financial Post - February 17, 2021] The U.S. will be awash in stimulus dollars soon — and Canada must catch that wave The word ‘boom’ is starting to show up in analysts reports. While Canada has botched the vaccine rollout at least in the short-term, pundits believe the blip will soon be in the rearview mirror if more paralyzing delays are few and far between in the near future. The good news is that the Pfizer-BioTech joint venture will deliver more than 878,000 [...]

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Canada house prices to build up this year, outpace inflation: Reuters poll

[Reuters - February 1, 2021] BENGALURU (Reuters) - Canadian house prices will continue their upwards march this year, outpacing inflation after hitting record highs in 2020, according to a Reuters poll of property market analysts who said the risk of a COVID-19 resurgence derailing activity was low. Renewed lockdown restrictions after a second wave of infections hit the country are threatening expectations for a strong recovery after the economy likely posted its biggest GDP drop on record of 5.1% in 2020. [...]

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Bank of Canada sees economy shrinking in first quarter as second wave makes for choppy recovery – Interest rate held at 0.25%

[Financial Post - January 20, 2021] Bank of Canada governor Tiff Macklem, an enthusiastic water skier, borrowed from one of his favourite sports to describe the current state of the Canadian economy. “We’ve said for some time that we’re expecting a choppy recovery and, unfortunately, we’re in a very serious chop,” he said on a Jan. 20 call with reporters after the central bank released a new forecast that predicts an economic contraction this winter. The forecast is a disappointing turn. Canada’s economy [...]

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Canada 2021 Housing Forecasts Call For A Boom … Or The Worst Crash in 40 Years

[Huff Post - January 2, 2021] Amid an unpredictable pandemic, forecasts for the housing market are pretty much all over the map. This could be the toughest year in living memory to make predictions about the economy ― especially the housing market. Amid the worst economic slowdown in decades, home sales and prices soared in many Canadian cities in 2020, along with housing markets in many other countries. The average house price in Canada has shot up by 13.8 per cent   over [...]

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