United States• The risk of debt restructuring in Greece is mounting, which in turned spurred Standard & Poor’s to downgrade the country’s credit rating by two notches.
• Meanwhile, the roller coaster ride of crude oil underscored the volatility in oil markets, prompting U.S. stock markets to mirror these movements.
• The effects of surging oil prices were evident on March’s trade data, and April’s retail sales and consumer price data
• Going forward, should the recent drops in the price of crude oil be sustained, it could provide some relief to consumer spending and the trade balance.
Canada• Inflation is expected to record another sizeable gain when data are released next Friday. Food and energy have only been mostly responsible for the recent strength in consumer prices. Economic growth in Canada has been surprisingly strong recently and inflationary pressures come with the territory.
• Also, food and gas prices are not the be-all and end-all of the consumer price index. There are many components recording either low or negative inflation which have been, for now, providing some offset.
• Going forward, inflationary pressure will continue to build, though at a modest pace consistent with our forecast for moderate economic growth.
• TD Economics continues to expect the Bank of Canada to resume hiking interest rates at their July meeting, bringing the Overnight Rate to 2.00% by year-end.
So far so good and right now if you are looking to buy or refinance our mortgage rates are quite good.
1 year fixed as low as 2.75%…3 year fixed 3.49%…5 year fixed 3.85%…and variable mortgage Prime – .85= 2.10%.
Bye for now.