STEVEN TSE PERSONAL REAL ESTATE CORPORATION
  • PROPERTIES
    • FEATURED LISTINGS
    • SOLDS
  • SERVICES
    • SELLERS
    • BUYERS
  • NEWS
  • CONNECT
    • MEET STEVEN
    • CONTACT
  • RESOURCES
    • TESTIMONIALS

Interest Rates “Won’t Rise Until Late 2017 – Then Slowly:” CIBC Chief Economist

4/5/2016

 
JOANNAH CONNOLLY (REW) - There are no signs that interest rates are going to increase any time soon – not until likely the end of 2017, CIBC World Markets chief economist Benjamin Tal said March 30.

Speaking to a sold-out audience at the Vancouver Real Estate Forum at the Vancouver Convention Centre, Tal said that the Bank of Canada’s agenda has been, and will remain, keeping the Canadian dollar low – and that means suppressing interest rates for longer.

Tal, who is considered arguably the country’s leading housing market economist, said to the packed room, “Even if the Fed raises rates in June, and December, the Bank of Canada will not. This bank has an agenda, and that agenda is a weaker Canadian dollar.

“Why? Partly because during the dark days of parity with the US dollar – and they were dark days, we had no business being at par with the US dollar – we lost 10 per cent of capacity in Canadian manufacturing.”

He added that even if the Bank of Canada did raise rates in late 2017, it would do so very slowly – describing the central bank as “extremely dovish.”

Foreign Investment
​
Tal also told delegate that he believed the level of overseas investment in real estate – offshore buyers parking their money in Vancouver property but not living in the city – was lower than perceived. However, he said that the “satellite situation” – whereby an immigrant family lives in Vancouver with the primary earner mostly living and working abroad – was likely higher than perceived, and little talked-about.

However, Tal added that in terms of information on the impact of foreign buyers in the market, that we are “flying blind” and that there is “only one thing worse than no information, and that’s bad information.”

He strongly criticized the “back-of-the-envelope” calculations that are being widely reported, as well as slamming the mainstream media for “being all over them.” Tal asserted that it is dangerous to report inaccurate claims as it can lead to misinformed policy.

    Market Update

    Updates on Real Estate news happening in your city. 

    Archives

    January 2023
    November 2022
    October 2022
    September 2022
    August 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    February 2021
    January 2021
    November 2020
    October 2020
    August 2020
    July 2020
    May 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    September 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    Architecture
    Banking & Mortgage
    City Development
    City Events
    Home Staging
    Market Trends
    Project Presales
    Strata
    Supportive Housing
    Vancouver Heritage

  • PROPERTIES
    • FEATURED LISTINGS
    • SOLDS
  • SERVICES
    • SELLERS
    • BUYERS
  • NEWS
  • CONNECT
    • MEET STEVEN
    • CONTACT
  • RESOURCES
    • TESTIMONIALS