The Bank of Canada’s upgraded GDP growth forecast for this year looks overly optimistic given NAFTA and housing-related risks. Despite further increases in household borrowing costs and tougher new mortgage lending rules, the contribution to growth from household consumption and residential housing investment is projected to be stronger now than it assumed before. There is some wishful thinking going on among policymakers.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.