Housing Prices, Interest Rates and Friday Thoughts

After a busy week (for me at least) here are some highlights from this week in finances in Canada

1. Canadian Interest Rates have gone up. The bank of Canada up’ed their overnight rate by 1/4% and said there might be another one soon (but no long term trend predicted either). I think the strong Canadian dollar is stopping any whole sale rate increases. (rate is 4.5%)
2. The Bank of Canada also says that their inflation goals for the coming year are higher as well, their web site currently says their target is 2.2% inflation, but now the CBC is saying their new target is 2.5% .
3. New housing prices increased for the slowest rate in a while last month (which is a large inflationary factor), the increase year over year for May is only 8.6% but in April the rate was 8.9% (year over year) so that is a decrease in the increase, which is kind of good. Again Saskatchewan and Alberta led the way with the price increases (but not as high as they have been).
4. The Canadian dollar sits at 95 cents to the American dollar, which is mighty strong, with predictions of it overtaking it’s Yankee cousin before the new year? Wow.

Have a good weekend all.