(October 8 – 13:10 ET) – Today’s
better-than-expected housing
report, coupled with the
surprisingly good labour report,
may mean the Bank of Canada will
raise rates by mid-2000, say
economists at RBC DS Capital
Markets Research.
They expect the central bank to
hold off a rate hike for the
remainder of this year.
Nesbitt Burns Inc. chief
economist Sherry Cooper says that
the housing numbers were better
beneath the surface than on the
strong “headline” number and
shows the economy is definitely
chugging along at full steam.
While overall starts were up
3.7% in September, single-family
starts were even better, up
5.6%.
Québec was particularly
robust, up 63% month over month.
Ontario starts fell 2.4%; and
Alberta and Manitoba slumped a
bit as well. And B.C. was back
strongly, finally shaking off
the doldrums caused by the Asian
flu.
IE Staff
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