TD Canada Trust provides a weekly economic highlight report that we choose to share with our clients and those who follow us. This is an easy place to stay current on the broader economic conditions in Canada and the U.S. so that you are better informed to make stronger decisions around your own real estate investments. We are always available to answer any questions or walk through your real estate investment goals for now or in the future.
- The Bank of Canada’s April MPR was front and center this week. Both the global and Canadian economic outlooks were revised down for 2019.
- The Canadian economy is now estimated to be operating with more slack, lasting longer than previously forecast. This suggests that current stimulative interest rates will need to persist for some time.
- The weaker economic outlook is broadly consistent with our March QEF. As such, we anticipate that the policy interest rate will hold steady through 2020.
- The American economy grew by 3.2% in the first quarter of 2019, comfortably beating market expectations. However, the strength was driven by inventories and net exports, while domestic demand growth weakened.
- The housing market continues to be an economic weak link. Existing home sales in March fell below expectations. A lack of inventory appears to be weighing on sales activity..
- As confirmed in the GDP report, price pressures were softer than expected early in the year, underpinning the Federal Reserve’s move to the sidelines.