A Very Different Housing Issue

The Week Ahead

May 23, 2017

We’re not as different as you think, or at least as the BoC would have you believe. In next week’s statement Governor Poloz will likely once again alert investors to differences between the US and Canadian economies, explaining why rates here remain on hold while the US hikes.

However, earlier this week we showed that labour market indicators, including wages on the lesser-watched payroll survey, aren’t really that much different in Canada than they are in the US. The same can be said for inflation, if we allow for differences in measuring a key component: housing.

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