The outlook for Canadian mortgage rates has shifted significantly over the past month. What had previously looked like a period of relative calm has been disrupted by yet another rise in global oil prices and renewed trade tension between the United States and Canada.
Higher oil prices resulting from the ongoing conflict with Iran and its consequences for global oil production and shipping are pushing global inflation expectations higher. As a result, expectations for central bank easing have largely disappeared. The US Federal Reserve has resumed tightening policy and signaled that additional rate increases may be required, while financial markets increasingly expect the Bank of Canada may face similar pressure if inflation continues to rise.
Work through the infographic four pages below for more details!