Call Marg: 705-446-1762

Guest Post by Dave Larock

Mortgage Rate ConceptThe Bank of Canada (BoC) left its overnight rate unchanged last week, as was universally expected.

The Bank also issued its latest policy statement, which is basically an assessment of how events both at home and abroad are influencing its monetary-policy direction. Here are the highlights from the BoC’s latest policy statement, with my accompanying comments:

  • Overall global economic growth is evolving as the BoC anticipated in its October Monetary Policy Report (MPR). The U.S. economy “continues to grow at a solid pace”, and while the Bank noted that “private domestic demand has proven slightly less robust than expected”, I don’t think this is too concerning because Americans are saving more instead of spending these days. To wit, the U.S. personal saving rate rose steadily from 4.80% in May of this year to 5.60% by October, which is the highest it has been in nearly three years.
  • The Bank notes that “ongoing terms-of-trade adjustments and shifting growth prospects across different regions are contributing to exchange rates movements”, and that against this backdrop “policy divergence is expected to remain a prominent theme”. In other words, countries are experiencing very different economic growth trajectories which are leading to exchange-rate swings and are impacting the relative demand for imports and exports. These diverging economic circumstances require the central banks to undertake very different monetary-policy actions, and the BoC calls this a “prominent theme” that will continue to have a significant impact on global economic growth going forward.

Read More and see the bottom line…

David Larock is an independent full-time mortgage planner and industry insider. Visit his blog for many more interesting articles and some great mortgage advice. 

Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg

Monthly E-Newsletter

Marg Scheben-Edey

Real Estate Broker
Market Value Appraiser - Residential
Accredited Green Broker™
(designated by the National Association of Green Agents & Brokers)

RE/MAX four seasons
realty limited, Brokerage
Each Office Independently Owned & Operated
67 First Street, Collingwood L9Y 1A2

Contact Marg

 Direct: 705-446-1762

Prefer Text? 705-446-5066

Email Marg

© Copyright 2017 collingwood-bluemountain.com. All Rights Reserved.

Privacy Policy | Sitemap

Get Marg's Newsletter Delivered to Your InboxMonthly

Hey, it never hurts to know more about the local market and the goings on, does it? Stay “in-the-know” about the South Georgian Bay real estate market as well as local news, great new businesses and other fun stuff. At least you’ll have some impressive local trivia at the next cocktail party! Now, I just need a little info from you. (This information will never be shared – I promise!)

Success!

Pin It on Pinterest