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Bank of Canada Still Expects No Rate Increases Until 2023

Published by Dr. Sherry Cooper, Chief Economist, Dominion Lending Centres For the original article, CLICK HERE. The Bank of Canada released its January Monetary Policy Report (MPR), showing they expect to keep overnight interest rates at its “effective lower bound” of 0.25% until 2023 (see chart below). To reinforce this commitment and keep interest rates low across the yield curve, the Bank will continue its Quantitative Easing (QE) program–buying $4 billion of Government of Canada bonds every week until the recovery is well underway. The central bank indicated it could pare purchases once the recovery regains its footing. According to the Bank’s press release, “The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In our projection, this does not happen until into 2023.” Officials are apparently optimistic about the economy’s prospects …
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Canadian Real Estate Association December 2020 National Statistics

National Statistics Record December caps record year for Canadian home sales Ottawa, ON, January 15, 2021 – Statistics released today by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in December 2020. SUMMARY: National home sales rose 7.2% on a month-over-month (m-o-m) basis in December. Actual (not seasonally adjusted) activity was up 47.2% year-over-year (y-o-y). The number of newly listed properties climbed 3.4% from November to December. The MLS® Home Price Index (HPI) rose 1.5% m-o-m and was up 13% y-o-y. The actual (not seasonally adjusted) national average sale price posted a 17.1% y-o-y gain in December. Home sales recorded over Canadian MLS® Systems jumped by 7.2% between November and December to set another new all-time record. (Chart A) Seasonally adjusted activity was running at an annualized pace of 714,516 units in December 2020 – the first time on record that monthly sales at seasonally …
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Population of Kitchener-Cambridge-Waterloo increased by 50,000 over past 5 years: StatCan (Global News)

Original Source:  GLOBAL NEWS The combined population of Kitchener, Cambridge and Waterloo is estimated to have grown by 50,000 people over the past five years, according to a report released by Statistics Canada on Thursday. It estimated the population of the tri-cities to be at 593,882 last July, more than 50,000 above the total of 542,034 it estimated for 2016. READ MORE: What Canada’s population will look like in 2036 The three cities grew at a rate of two per cent over that period, which tied them with Halifax for second-fastest in Canada. Oshawa was atop that list and like Kitchener-Cambridge-Waterloo, the CMA figures some of that growth has come from Toronto, where 50,000 people left between July 2019 and July 2020. “The desire to live outside the largest urban centres was also reflected in the rapidly increasing housing costs in neighbouring real estate markets, a trend that has continued in spite of the pandemic,” the report read. …
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Canadian economy lost 63,000 jobs in December

It’s going to be another interesting year to say the least, but with all this change comes the opportunity to try something new or different. Valko Financial Ltd. offers elite-level support to all of our agents and with our heart-centred, community-minded values we are in a position of growth and looking for amazing and ambitious agents across Canada. Visit www.TracyValko.ca for more information. Original Source:  KitchenerToday.com Statistics Canada says the economy lost 63,000 jobs in December in the first monthly decline since April amid tightened public health restrictions to slow a resurgence in the pandemic. The unemployment rate edged up to 8.6 per cent compared with 8.5 per cent in November. The result ended a streak of monthly job gains that began in May as restrictions put in place to slow the spread of the pandemic began to ease. Full-time employment in December rose by 36,500, but there was a …
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Could the BoC be considering a micro cut to Canada’s overnight lending rate?

The chance of a “micro-cut” to the Bank of Canada’s overnight rate has increased due to the economic impact of the coronavirus pandemic. Industry experts are anticipating a cut of less than 25 basis points. The lower the overnight rate is, the less expensive it is for consumers to borrow money. The potential decrease in the rate is due to the need for more widespread financial stimulus to the Canadian economy, says Andrew Kelvin, chief Canada strategist at TD Securities. A micro-cut like this has not occurred since the implementation of the overnight rate in February 1996. A cut to the overnight rate could increase spending, as seen in the boost to the Canadian housing market due to historically low borrowing costs. The delayed rollout of the COVID-19 vaccine as well as the decline in jobs are the main factors of a slow Canadian economy in 2021. The Bank of …
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Canadian Jobs Market Tanked in December

  Canadian employment fell 62,600 last month, a bit weaker than expected, following seven months of recovery (see chart below). The rapid rise in COVID cases and the ensuing lockdown measures in many key regions caused the net loss in jobs in the mid-December survey.  Especially hard hit were workers at restaurants and hotels who suffered a hefty 56,700 employment loss.  The jobless rate rose a tick to 8.6%–well below the peak of 13.7% in April–but still three percentage points above its pre-pandemic level. However, there were some bright spots as several sectors churned out small gains (see second chart below).  Among them were finance, insurance and real estate, as well as scientific and tech services. Manufacturing rose 15,400, and public administration reported solid gains. On a positive note, full-time jobs actually rose 36,500, and average wages pushed back up and are now 5.6% higher than one year ago. This outsized gain, …
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Support Local Business – Cambridge Chamber of Commerce Member Restaurant List

Support these fantastic local restaurants by visiting their websites and/or giving them a call! Bookmark your favourites.  Follow their accounts on social.  Share the list.  There are SO many ways to support our community businesses right now ❤️️ Original Source:  Cambridge Chamber of Commerce   Ben Thanh Viet Thai Restaurant 10 Pinebush Rd. Unit #3 Cambridge, ON Visit website   Bingemans 425 Bingemans Centre Dr. Kitchener, ON Visit website     Black Badger, The 55 Water St. N. Cambridge, ON Visit website   Blackshop Restaurant. 595 Hespeler Road Cambridge, ON Visit website     Cafe du Monde Creperie 614 Coronation Blvd. Unit 302 Cambridge, ON Visit website   Cambridge Mill 100 Water St. N. Cambridge, ON Visit website     Cazs Fish & Chip Shoppe 10 Pinebush Rd. Unit #2 Cambridge, ON Visit website   Classic Catering R.R. #1, 1386 Cooper Rd. Cambridge, ON Email for Info     Country Girl Family Restaurant 561 Hespeler …
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Home sales up close to ten per cent in 2020

A fantastic local read from Kitchener Today.           December sales also set a record   Home sales in Waterloo Region finished strong to end 2020. Another record was set in December as 351 properties were sold through the Multiple Listing System, which is a 42 per cent increase compared to December 2019. When you break it down for the year, over 6,400 homes exchanged hands, an increase of nine per cent compared to figures from the previous year. “This marks the sixth consecutive month of record home sales in Kitchener-Waterloo and helps propel 2020’s annual number of transactions over the 6,000-unit threshold for only the third time in our history.” Nicole Pohl, President of the Kitchener-Waterloo Association of Realtors, explained in a news release.   Here’s a breakdown of sales in December:   204 detached homes (up over 46 per cent) 64 freehold townhouses (up 68.4 per cent) 63 …
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Bank of Canada Confirms Commitment To Low Interest Rates

Despite the good news on the vaccine front since the Governing Council’s last meeting in late October, the Bank of Canada reasserted its commitment to provide extraordinary monetary policy support for many months to come. The statement released today reiterated that the Bank will hold the policy interest rate at its effective lower bound of 0.25% “until economic slack is absorbed so that the 2% inflation target is sustainably achieved.”  Although inflation in October picked up, it was mainly because of higher prices for fresh fruits and vegetables. The Bank’s policy statement said that measures of core inflation are all below 2%, and “considerable economic slack is expected to continue to weigh on inflation for some time.”  The economy will continue to require this stimulus until 2023–as stated in the most recent (October) Monetary Policy Report (MPR).  The central bank will reassess the outlook when it meets again on January 20 …
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Canada’s Jobs Recovery Slowed Again in November With Second Wave

The Canadian economy rebounded sharply in the third quarter, posting its most rapid expansion ever. Still, it was a lower than expected gain, and early data show that momentum is quickly fading in the face of a second wave of the pandemic.  Gross domestic product rose by a massive 40.5% annual rate in Q3, reversing much of the historic 38.1% plunge in Q2 (revised from -37.8%). No matter how impressive the Q3 bounce was, it fell short of well-telegraphed expectations—even yesterday’s Fall Fiscal Statement assumed a 47.5% surge, reflecting the widespread reopening of the economy. Still, thanks to the magic of upward revisions to prior quarters (stretching back years), it appears that the economy is headed for roughly an annual decline of about 5.7% this year. The rebound brings total output to 95% of pre-pandemic levels. With the huge second wave in COVID cases, renewed restrictions have been implemented across the country in recent …
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