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Cory Kline, AMP - Mortgage Agent
Cory Kline, AMP
Mortgage Agent
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Economic Highlights this past week

Updated Friday, January 11, 2013
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The U.S. Congress reached a deal to avoid the worst of the fiscal cliff, although a decision on scheduled spending cuts was pushed back two months. This outcome was quite close to our expectation, and as such our macroeconomic outlook remains unchanged, as do our interest and foreign exchange rate forecasts.

 

 

• Delaying a decision on automatic spending cuts by two months coincides with the need to raise the debt ceiling, raising the potential for a damaging game of chicken akin to the 2011 debt-ceiling debate. This is a key risk for markets in the next couple of months.

• In addition, euro zone related volatility could also return to the fore. Spain could be forced to seek a bailout, and Italy faces elections in February. The ECB is likely to cut rates further in the first quarter.

• With the outlook for global economic growth unchanged from December, our outlook for commodity prices is also maintained. Most commodities look set to average higher in 2013 versus 2012 helped by stronger economic growth, particularly in the second half of the year, and continued stimulus from central banks.

• We continue to expect the Bank of Canada to start raising interest rates in the fourth quarter of this year as improved external demand helps buoy economic growth. But rate increases should remain gradual and modest.

 If you, your family, or co-workers require guidance on current mortgage market trends, please call us, we are always available to help.

-Cory Kline (705-794-1283 or cory@ndlc.ca)

Mortgage planning since 1998


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