March 2022 - Monthly Newsletter

Bank of Canada increases policy interest rate

The Bank of Canada increased its target for the overnight rate to ½ %, with the Bank Rate at ¾ % and the deposit rate at ½ %. The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds on its balance sheet roughly constant until such time as it becomes appropriate to allow the size of its balance sheet to decline.

The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty. Prices for oil and other commodities have risen sharply. This will add to inflation around the world, and negative impacts on confidence and new supply disruptions could weigh on global growth. Financial market volatility has increased. The situation remains fluid and we are following events closely.

Global economic data has come in broadly in line with projections in the Bank’s January Monetary Policy Report (MPR). Economies are emerging from the impact of the Omicron variant of COVID-19 more quickly than expected, although the virus continues to circulate and the possibility of new variants remains a concern. Demand is robust, particularly in the United States. Global supply bottlenecks remain challenging, although there are indications that some constraints have eased.

Economic growth in Canada was very strong in the fourth quarter of last year at 6.7%. This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed. Both exports and imports have picked up, consistent with solid global demand. In January, the recovery in Canada’s labour market suffered a setback due to the Omicron variant, with temporary layoffs in service sectors and elevated employee absenteeism. However, the rebound from Omicron now appears to be well in train: household spending is proving resilient and should strengthen further with the lifting of public health restrictions. Housing market activity is more elevated, adding further pressure to house prices. Overall, first-quarter growth is now looking more solid than previously projected.

5 tips for discovering your new neighbourhood

Moving to a new place involves lots of changes, and it can take time to get used to your new surroundings, including new people, shops, parks and more. But living somewhere new is also an opportunity to explore and build community with your neighbours and in local spaces. Here are some tips to discover your area:

1. Check out local events. While indoor events may be on pause or restricted on and off during the pandemic, communities are still trying to keep outdoor and online events running and accessible. So, join a local online crafting event or virtual trivia games night. Head to an open-air farmers’ market or even go to your local outdoor skating rink to get a feel for your neighbourhood. Your public library’s website is a good place to find upcoming events.

2. Spend more time outside. If you’re trying to meet people, it can be hard finding the right way to start a conversation. But if you take a long walk through your neighbourhood or take your pup to a nearby dog park, casual chats are more likely to happen naturally. You might compliment someone’s outdoor entry arrangement or speak about the weather to a passerby.

3. Take a stroll along main street. A great way to get to know your new community is by connecting with small businesses serving the area. Pick up some flowers or plants from your local florist, grab some takeout from the neighbourhood pub and buy some books from your local bookshop. Chat with the folks who work there to get recommendations and build connections.

4. Get active in public spaces. Whether it’s a community garden, your local library or a neighbourhood park, find something that interests you and get involved. You can volunteer for a park cleanup, join a virtual book club or begin to plan out your own veggie patch in a community garden while learning about your area.

5. Get to know your community through census data. The 2021 Canadian census data are being released all throughout this year, and it’s a great way to find out more about your city, town, or neighbourhood. Use them to discover what languages are commonly spoken in your area, how many families have kids of similar ages as your own and more. By being more informed about your area, you can help drive informed decisions by leveraging your community leaders to consider whether a new school or retirement home is a valuable addition to your neighbourhood.

Find more information at statcan.gc.ca/census.

www.newscanada.com

Have mortgage questions? I'm here to help you!

Please feel free to contact me with any questions you may have. It would be a pleasure to assist you or any one of your friends or family members!

Contact Me