The assessment of Canada released last week by the Paris-based Organization for Economic Co-operation and Development (OECD) is quite stunningly positive, though overshadowed by Jim Flaherty’s hints Tuesday that we might not be able balance the budget quite as soon as the 2015-16 deadline set in his March 2012 budget.
The OECD forecasts Canada continuing to outpace its Group of Seven peers in economic growth over the next 50 years. And it has us lagging, slightly, only Japan in the arguably more important measure of per-capita GDP growth during the next half century.
The OECD sees Canadian GDP growth averaging 2.2% annually over the next half century, with only the US and Britain, each at 2.1%, coming close among G7 countries.
Curiously, for all the whining about laggard Canadian productivity growth that has been part of our economic discourse for decades, the OECD says Canada will not enjoy the spectacular growth rates that Italy, Greece and South Korea could reap if only they would adopt market-liberalizing practices. That’s because Canada is already at or near “best practices” in economic efficiency, the OECD concludes.
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Interest rate hikes have become less imminent than the Bank of Canada once expected, although rates are still likely to rise, central bank Governor Mark Carney said in an interview published on Saturday.
“Over time, rates are likely to increase somewhat, but over time, so a less imminent timing relative to our expectation,” Carney said in an interview with the National Post.
Canada’s economy rebounded better than most from the global economic recession, and the Bank of Canada is the only central bank in the Group of Seven leading industrialized nations that is currently hinting at higher interest rates.
But Carney has also made clear that there will be no rate rise for a while, despite high domestic borrowing rates that he sees as a major risk to a still fragile economy.
Click here for more details from Reuters.
For all the talk of rule changes slowing the growth of the Canadian mortgage market, some surprising statistics from the Bank of Canada show that has not been happening in any significant way.
Policymakers trying to cool the growth of household debt and home prices may not like it, but bank investors should given what it bodes for profits in the quarter that just ended.
The outlook for mortgage growth has been cloudy amid all the changes that Ottawa has made to try to dampen Canadians’ ardour for borrowing, and mortgages are still by far the biggest business for Canadian banks.
After a strong showing for mortgage growth in the fiscal third quarter for banks (which ended July 31st), few people would have been surprised by a marked slowdown in the fourth quarter as the changes finally begin to bite significantly into mortgage demand. Add to this signs that the housing market is slowing in key markets, with fewer sales and even soft prices, and the table is set for a significant drop in mortgage growth.
Click here for more from GlobeAdvisor.com.
Atlantic Canada is edging closer to real regulation, with the Nova Scotia government now eyeing the region’s fledgling association as a provider of basic broker education even as another province appears to drag its heels.
“The province has indicated that MBAAC (Mortgage Brokers Association of Atlantic Canada) will be an approved provider of the minimum education requirement course, which will be part of the new regulations when completed,” said Glen Ward, President of the association. “We have already agreed to partner with AMBA to provide this and build a course specific to the new regulations in Nova Scotia once they are finalized in the province sometime next year.”
When approved, MBAAC will be the second broker association offering a broker course in the province. In June this year, CAAMP launched a broker program containing courses specific to Nova Scotia legislation, land registration and business practices.
Earlier this month, CAAMP also announced it will be launching a course in Newfoundland and Labrador come 2013. However, none of the Atlantic provinces has a specific education requirement tied to their broker licensing programs, said Ward.
Click here for the full article from MortgageBrokerNews.ca.