Mortgage Market Commentary (May 2016)
The Bank of Canada has issued one of its most direct statements yet on the future of interest rates in this country. They are not going down … unless there is "a shock of some significance".
Governor Stephen Poloz made the statement in New York following a speech to a Wall Street audience, last week.
"It would be another negative shock but it would need to be obviously a shock which is of some significance or an accumulation of other shocks," Poloz said. He cited a major slowdown in the global economy triggered by weakening growth in the U.S. or China as the kind of shock that would have the Bank considering a rate cut.
Poloz expects the Canadian economy to get up to "full speed this year". He says the federal government's infrastructure spending plans more than off-set the downward pressure on the economy brought on by low oil prices and the diminishing effects of low interest rates.
If you or your associates have any mortgage-related questions, please feel free to contact me.
Chris
