(Source: Globe and Mail)

The resurgence in Canada’s residential real estate market might be too much of a good thing for the Bank of Canada, Toronto-Dominion Bank economists say.

“The Reserve Bank of Australia surprised markets today by hiking rates, and cited significant growth in housing credit and dwelling prices as part of the justification,” TD economists Craig Alexander and Grant Bishop said in a research note Tuesday. “The Bank of Canada could very well follow suit if Canadian real estate continues to heat up.”

Read Virginia Galt’s full article “Could rising home prices trigger interest rate hikes?” in the Globe and Mail (October 6, 2009).

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