Monday, April 16, 2007

FORECAST - Canada’s economy set for stronger growth

Toronto Real Estate Board (TREB) Average Prices and Graph Canada’s economy set for stronger growth - states RBC

Canada’s economy softened in 2006 but is set for a stronger performance — returning to its trend growth rate on a quarterly basis in 2007 and then bouncing up to a 3% real rate in 2008.

Tight labour markets + solid balance sheets = strong consumer spending ahead.

The federal government's budget was mildly stimulative and will boost growth by about 0.5 percentage points.

Businesses are in the middle of an investment cycle and are investing in new technologies and boosting capacity.

Inflation remains benign and on track to meet the Bank of Canada’s 2% target in the medium-term.

The Bank of Canada will hold the policy rate steady in 2007, but longer-term rates will rise in the second half of the year in line with U.S. Treasury yields. Rate hikes are likely in 2008. Courtesy of RBC financial

Current interest rates

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829

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