Canadians now paying more on mortgage borrowing costs

by Ephraim Vecina22 Apr 2019

Compared to the same month in 2018, Canadians have paid 8.1% more on mortgage borrowing costs in March, according to Statistics Canada.

The overall consumer price index last month, seen as an indicator of national inflation, saw 1.9% year-over-year gains. This exceeded the 1.5% increase in February and the 1.4% in January.

Said readings were in line with the expectations of economists polled by Thomson Reuters Eikon, The Canadian Press reported.

Resultant movements in the prices of fresh vegetables (up by 15.7%) and auto insurance (up by 5.6%) were also observed.

Earlier this month, Bank of Canada governor Stephen Poloz said that Canada’s current economic malaise will be fleeting.

The BoC governor assured that the economy would pick up pace significantly in the second half of this year, citing steady growth at the beginning of 2019 as a major boost to the nation’s fundamentals.

“There are challenges in the Canadian and global economies that we need to manage, but there are clear signs that Canada is adjusting to the challenges,” Poloz explained. “Recent economic data have been generally consistent with our expectation that the period of below-potential growth will prove to be temporary.”

In its latest outlook, the International Monetary Fund estimated that the Canadian economy will strengthen by 1.5% this year, and then by a greater 1.9% in 2020, accompanied by a projected global growth of 3.6% next year.

 

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