Investors who bought C$3 billion ($2.87 billion) worth of Canadian two-year bonds this week overpaid because the Bank of Canada may raise interest rates faster than is reflected in the yield.
Bank of Canada Governor Mark Carney may signal this week he’d rather raise interest rates gradually starting in June instead of waiting until July and moving in larger increments, economists said.
Home sales in Canada’s largest markets surged in September from a year earlier as historically low interest rates continue to lure buyers.
The era of easy money is shaping up to keep going into 2014.
Canada’s housing market will have a “soft landing” after years of strong gains and recent steps by policy makers to curb demand, said Michael Gregory, senior economist at BMO Capital Markets.
Bank of Canada Governor Stephen Poloz surprised investors by dropping language about the need for future interest rate increases, a move that’s leading to investor speculation about possible rate cuts.
Canadian Finance Minister Jim Flaherty is making progress in his effort to cool Toronto’s overheated condo market with tougher mortgage lending rules.
"I cannot believe how broadly based the revisions are."
- Derek Holt on Aug 15, 2014