AGENT LICENSE ID
M16001018
BROKERAGE LICENSE ID
12811
Janelle Brooks
Mortgage Agent
Office:
Phone:
Email:
Address:
4030 Sheppard Ave, Lower Level, Scarborough, Ontario, M1S 1S6
As an experienced mortgage professional, it is my job to get you the mortgage you need at the
price that you deserve. I work on your behalf and have access to over 25 different lenders.
Let’s work together to get you the right mortgage!
Call me for today’s unpublished rate specials!
BLOG / NEWS Updates
NBC BoC Policy Monitor: It’s beginning to look a lot like neutral
The Bank of Canada lowered the target for the overnight rate by 50 basis points for the second straight meeting, a decision in line with consensus and market expectations. This is the fifth rate reduction in as many meetings and brings the policy rate to 3.25%, or the upper end of the BoCs estimated neutral range (2.25% to 3.25%). The move also pushes the BoCs policy rate 150 bps below the Federal Reserves upper bound target, the most since 1997 (although that gap will likely narrow next week). Meanwhile, balance sheet normalization will continue as expected. Here are additional highlights from the communique and the opening statement to the press conference:
Driving the decision to cut 50 bps was inflation around 2%, excess supply and softer growth ahead relative to earlier expectations. Macklem added in the opening statement to the press conference that monetary policy no longer needs to be clearly in restrictive territory.
As for forward rate guidance, the press release notes we will be evaluating the need for further reductions in the policy rate one decision at a time. In the presser, Macklem said they expect a more gradual approach to monetary policy if the economy evolves broadly as expected. Note they no longer explicitly say they expect to cut their policy rate further.
The statement notes that Q3 growth was somewhat below the Banks projection and Q4 growth looks weaker than projected. Slower immigration will ease growth in 2025 while proposed fiscal measures will support demand. They will look through temporary demand effects.
The press release highlights that job growth continues to grow slower than labour supply. Wage growth showed some signs of easing, but remains elevated relative to productivity.
As for inflation, they still expect CPI to hover around 2% for the next couple of years. They note that the GST holiday will temporarily lower inflation but that will be unwound once the holiday ends. Therefore, watching core inflation will be critical to see underlying trends.
The Bank didnt have much to say on tariff threats other than noting that these have increased uncertainty and clouded the economic outlook. \
https://www.nbc.ca/content/dam/bnc/taux-analyses/analyse-eco/boc-policy-monitor.pdf
Bank of Canada reduces policy rate by 50 basis points to 3¼%
The Bank of Canada today reduced its target for the overnight rate to 3%, with the Bank Rate at 3% and the deposit rate at 3%. The Bank is continuing its policy of balance sheet normalization.
The global economy is evolving largely as expected in the Banks October Monetary Policy Report (MPR). In the United States, the economy continues to show broad-based strength, with robust consumption and a solid labour market. US inflation has been holding steady, with some price pressures persisting. In the euro area, recent indicators point to weaker growth. In China, recent policy actions combined with strong exports are supporting growth, but household spending remains subdued. Global financial conditions have eased and the Canadian dollar has depreciated in the face of broad-based strength in the US dollar.
In Canada, the economy grew by 1% in the third quarter, somewhat below the Banks October projection, and the fourth quarter also looks weaker than projected. Third-quarter GDP growth was pulled down by business investment, inventories and exports. In contrast, consumer spending and housing activity both picked up, suggesting lower interest rates are beginning to boost household spending. Historical revisions to the National Accounts have increased the level of GDP over the past three years, largely reflecting higher investment and consumption. The unemployment rate rose to 6.8% in November as employment continued to grow more slowly than the labour force. Wage growth showed some signs of easing, but remains elevated relative to productivity.
https://www.bankofcanada.ca/2024/12/fad-press-release-2024-12-11/
Scotiabank Economics: Rules of Thumb for Estimating the Impact of U.S. Tariffs on Canada
From Scotiabank
There are many uncertainties about the economic outlook as President Trump is set to take the helm of the United States. Those range from uncertainty about the policy actions he will take to uncertainty about the impact of those very policies. A case in point is the recent statement that he would implement tariffs hikes of 25% on all imports from Canada and Mexico, and 10% on imports from China. While we do not believe these tariffs will be implemented (see here), it is very likely that over the next several months, economic forecasts will need to present some alternative paths for the economy around a central scenario. Those alternative scenarios are likely to represent choices made by forecasters as to which policy assumption to include in their forecasts. Only when policy measures will actually be announced and implemented will uncertainty around the policy environment diminish. Given its critical nature to Canada and other trading partners, and to the U.S. itself of course, we thought it would be helpful to provide some rough rules of thumb for estimating the impact of trade policy changes on Canada and the U.S. These rules of thumb, derived from our macroeconometric model of the U.S. and Canadian economies, while by no means meant to be exact, are designed to help provide a quick and dirty assessment of the impact of changes in tariffs on the economy, inflation, and interest rates in both countries.
Click to read more https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.insights-views.tariffs--november-28--2024-.html
