The week is starting out quiet but the Bank of Canada rate announcement is tomorrow and the latest employment numbers are released on Friday. Of course, the big one to watch is the Bank of Canada announcement as this is the major indicator as to what direction interest rates are headed in Canada. Most economists are expecting the status quo, but there is increased talk of an increase before the end of the year, and this would be counter to much of the talk for no increases until well into 2013.
If inflation is picking up in the West, then it will prompt Bank of Canada Governor Mark Carney to rethink the direction on rates a bit earlier. It won’t be the cause of too many increases since there are still many signs pointing to low rates for the foreseeable future. But, some increase may have to happen in order quell inflationary pressures on the other side of the country.
Employment numbers are also going to be released this week and they will also give some insight into the strength of the Canadian labour market. Last week’s GDP numbers indicated a bit of a pull back so no one is expecting employment numbers to come out overly rosy.
In the meantime, bond yields seem to be leveling off and there are no major changes to mortgage rates.
Lee Welbanks is a Mortgage Broker with The Mortgage Centre and trusted Spring Realty mortgage expert. To learn more about your funding options please Contact Lee today. Lee will be posting these informative “Market Minutes” each Wednesday for you to enjoy. Please remember to subscribe to the Spring Realty Insider list to receive new blog post notifications, featured properties and insider access to Toronto’s hottest new developments.