As the nail biter in Europe continues, two economists are predicting the Bank of Canada will move to cut rates in a big way next year.
Sheryl King, an Economist at Bank of America Merril Lynch, said in a note that the volatility hitting Europe and the risk of damage to the global economy means the Bank of Canada will move to cut its benchmark interest rate to ward off the risk of recession. Her prediction is the cut will be a whopping 0.75% decrease from the current rate of 1%.
“With the Eurozone sovereign debt and banking crisis showing no sign of containment, we think the Bank of Canada will cut rates back to the effective lower bound of 25 basis points (0.25%) early next year,” she said.
King forecasts that the cut would come in two phases, with a 0.50% trim being announced during the bank’s January 17th meeting, with the second and final 0.25% cut coming during the March 8th meeting.
The landscape of the Canadian housing industry has changed dramatically over the past several years – physically and intrinsically.
Land becomes a premium, particularly in larger metropolitan centres, lifestyle and housing priorities adjust, Baby Boomers seek en masse to downsize – often uptown – and all these factors come together to create an explosion in the condo market, as developers seek to move their projects upwards, rather than sprawling out.
And as demand increases, the laws of economics say that so must supply. Condominium development has seen a healthy uptick over the last several years.
In a recent study by RE/MAX, outlining the sheer dollar impact that new construction and renovation has had, both on the dramatically doubling of property prices in the country over the last decade, and also in terms of driving revenues towards the new construction and renovations industries, they suggest that condominiums have emerged as an attractive option for several new groups, as attitudes and desires towards housing shift.
Click here to read the full story from PropertyWire.ca.
Your credit report is important and, because of that, a lot is written about it as well as talked about over dinner or as topics of water cooler conversations.
Although some of the advice comes from well-meaning people trying to help, misinformation or failing to go to trusted sources could make for some unfortunate surprises if you were to later view your credit score.
Click here to read five lies about your credit score from CanadianFinanceBlog.com.
If there’s one plaintive cry you tend to hear again and again from credit counsellors, it’s this: “If only our clients had come to see us sooner.”
By the time many people actually ask for help, their debt problems are so huge that their credit ratings are in tatters and some solutions may no longer be an option.
With that in mind, click here for a few of the early warning signs courtesy of CBC News that are pretty good indicators that people may be on their way to financial disaster and should seek help.