Working in the real estate industry, I get to connect with and build relationships with a wide range of professionals. Lana Russel is one of those professionals that has demontrated stellar service to her clients.
The following is an email from Lana Russell describing whats currently happening in the mortgage industry.
Market Update by LA Mortgages
- Most economists aren’t budging in their prediction Bank of Canada Governor Stephen Poloz will hold interest rates steady for at least another year.
- Even with renewed speculation about an impending global recession and a trend among the world’s central banks toward easing policy, a Bloomberg survey shows a majority of economists still expect Poloz to keep the benchmark overnight rate at 1.75 per cent until the end of 2020.
- Of the 15 economists surveyed by Bloomberg, nine expect the Bank of Canada to remain on hold to the end of 2020. Domestic banks are among the more optimistic -- with Toronto Dominion, Bank of Montreal, Scotiabank, National Bank and Laurentian expecting Poloz to hold well into next year.
- But not all are convinced, with six analysts predicting at least one cut amid escalating U.S.-China trade tension that is raising doubts about the global growth outlook, and which prompted the Federal Reserve to cut interest rates last week.
- Trade and investment are most at risk for Canada. While underlying export strength is at its strongest since 2015, evidence of slowing global demand is mounting. Inventory-to-sales ratios are at recession-era highs in both the manufacturing and wholesale sectors, and leading indicators for Canadian exporters are deteriorating. Signs are also emerging that the nation’s red-hot labour market is cooling off.
- There are plenty of arguments in favour of a hold. Canada’s economy in the second quarter probably grew at a faster pace than the 2.3 per cent forecast by the Bank of Canada in its July monetary policy report. Interest rates also remain stimulative in real terms and the inflation rate is bang-on the central bank’s target.