Canadian housing market ‘faltering’

“Canada’s housing market is faltering just as the U.S. market roars back to life. This sudden reversal of the narrative that has prevailed since the U.S. housing bust in 2006 is about to make Mark Carney’s interest rate juggling act much trickier. The Bank of Canada’s next rate-setting announcement is Tuesday, followed by the monetary policy report Wednesday,” Barrie McKenna of The Globe and Mail wrote for the newspaper on Monday. The article continued, “There won’t be a rate hike – not yet, anyway. But the betting among some Carney watchers is that the bank governor will drop his implicit projection of higher rates soon, or at least modify the bank’s now-familiar pledge of ‘some modest withdrawal’ of rock-bottom rates and monetary stimulus. Mr. Carney is facing an unusually uneasy global economic environment. China’s potent economy is slowing. Europe’s debt crisis continues to fester. And while U.S. prospects are looking up – most notably in housing – the uncertainty surrounding the November election and the looming fiscal cliff have economists and investors on edge.” Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS

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