Featured
Quantitative Tightening – When Will the Paint Dry?
Global financial markets faced unprecedented disruption when economies shut down in response to the global COVID-19 pandemic. To support financial markets, the Bank of Canada launched 10 liquidity facilities and asset purchase programs. As markets recovered from the initial shock, the central bank refocused their operations from ensuring that markets functioned to using these tools…
Read more
Housing Abundance is the Best Rent Control
Despite the presence of various rent control regulations and policies across Canada, doubts persist about their effectiveness in curbing inflation in the housing market. Rent control measures vary across Canadian provinces. Quebec publishes annual rent guidelines, while British Columbia had a 2% cap in 2023, rising to 3.5% in 2024. In Ontario, rent hikes are…
Read more
Bank of Canada Stuck on Pause
January employment data came in stronger than expected with a gain of 37,000 jobs and a slight decrease in the unemployment rate to 5.7%. While the headline was positive, the details paint a more complex picture. Most of the job gains were in part-time positions, while full-time employment declined. Private sector employment saw modest growth…
Read more
Canada’s Foreign Buyer Ban – Prudent Policy or Political Theatre?
The federal government has extended the ban on foreign purchases of homes across most of the country by two years, prolonging the existing ban that was set to expire at the end of this calendar year. This decision comes amidst ongoing controversy surrounding the topic. CMHC and other agencies have historically lacked comprehensive records of…
Read more
Reading the Tea Leaves on the Fed’s Policy Decision
Much of understanding central bankers is interpreting changes in their policy statements. As expected, the Federal Reserve (the Fed) left its policy rate unchanged and maintained the current pace of quantitative tightening in its January meeting. The Federal Open Market Committee (FOMC), however, made significant changes to the policy statement, suggesting an upward revision in…
Read more
Improving Affordability by Financing Infrastructure More Efficiently
Canada’s federal government has a long history of involvement in municipal infrastructure assistance. In 1938, the government passed the Municipal Improvements Assistance Act, which facilitated loans from 1938 to 1940, primarily aimed at addressing unemployment by supporting sewage and water improvement projects. It was in this spirit of generating employment and economic growth, as well…
Read more
When Will the Fed Declare Victory on Inflation?
The U.S. economic expansion shows no sign of abating. With strong consumer spending, a solid labour market, and inflation at the doorstep of price stability, the outlook is solid. The Federal Reserve Bank of Atlanta is calling for Q1 growth of 3%, following growth of 3.3% in the fourth quarter. It is looking more likely…
Read more
Contact Us
Contact us today to set up an appointment.