The Bank of Canada announced today that it is keeping its overnight rate unchanged at 2.25%. This was widely expected, and frankly, there was very little reason for the Bank to do anything else. The Canadian economy has performed somewhat better than expected over the last few months, but inflation remains elevated and the trade situation with the United States has deteriorated considerably. For mortgage borrowers, my advice has not really changed. Inflation Is Still the Problem Canadian...

Dear Reader, Something strange is happening in Canada. The economy is beginning to look better. Canada is creating jobs. Inflation, once you look beneath the energy shock, is basically back to normal. GDP is positive. Interest rates are well below their peak. Normally, that combination would eventually produce a housing recovery. But it isn't happening. Housing activity remains extraordinarily weak, and July made that disconnect even harder to ignore. Economic recovery with a cold housing...

Dear Reader, This morning the Bank of Canada held its overnight rate at 2.25% (mortgage prime at 4.45%), the fifth hold in a row and exactly what the market expected. No surprise. On Monday I published the full picture of why the economy has given the Bank no room to move: the recession we are already in, the savings squeeze holding it up, and why the bond market, not the Bank, is the real story to watch. The whole thesis is here: https://www.refinancebc.ca/post/the-recession-we-are-already-i...