Eric Lascelles is Chief Canada Macro Strategist with TD Bank / TD Securities. In this six minute video interview, Eric speaks to the expected rate changes that Bank of Canada (BoC) has coming.
A couple things we noticed from this quick and informative interview
- BoC is taking a different approach than what the markets are taking
- Canada’s GDP growth per quarter is “very high” at 5-6%
- Employment increases have been seen for the past 8-10 months in Canada
- While Canada’s economy is – and has – recovered well, BoC must take into account the global affects that are currently underway. This factor causes uncertainty with what they might do in coming rate announcements.
- The July 20th rate change by BoC is expected to increase the overnight rate from 0.5% to 0.75%
- The Fed (US Federal Reserve) is expected to lag the B0C by a full year in its rate increases… expected to occur in 2011
- BoC is moving rates earlier – and likely at a more steady/slow rate of increase – than the Fed
The full interview can be found here
At Alta Pacific Mortgages & Investments, we watch the global economic conditions as closely as we watch the Bank of Canada’s movements… but even above these important indicators, we watch what’s happening in the Western Canadian real estate market. Investors in our mortgage fund (Alta Pacific Mortgage Investment Corp. / MIC) have experienced steady consistent returns since the fund first started operations. If you’re interested in learning more how you can invest in Western Canadian Real Estate through mortgages, please don’t hesitate to contact us.
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