HIGHLIGHTS OF THE WEEK – August 2

United States
• There was good news and bad news about the U.S. economy this week. Q2 growth disappointed, thanks
to a huger drawdown in inventories, which is likely be reversed in the coming quarters.
• The Fed sounded slightly more optimistic on the risks and the labor market. But global risks abound and
the Fed remains firmly in wait and see mode.
• Oceans apart, the Bank of Japan tapped a bit harder on the monetary accelerator this week, and hinted
at more to come. This would add to an expected fiscal stimulus package aimed at helping to lift Japan
out of deflation once and for all.

Canada
• The Canadian economy contracted by 0.6% m/m in May, though the headline should be taken lightly.
Transitory factors were the main culprit. We expect a bounce back in GDP in the coming months.
• Business confidence in Canada continues to trend upwards in July, despite a small fallback from the
previous month.
• The government of British Columbia looked to dent affordability concerns amid a potentially overheating
housing market, introducing a four pronged plan this week. Most notably, a 15% tax was introduced on
foreign individuals and corporations on the purchase of residential property in Metro Vancouver.

For further information, please contact:

John Maveety Manager, Residential Mortgages – Greater Ottawa Area TD Canada Trust
T: (613) 371-1984 F: (888) 899-1984 P: (866) 767-5446
John.Maveety@td.com