Latest news with #DougPorter
Yahoo
16 hours ago
- Business
- Yahoo
Instant View: Bank of Canada leaves benchmark interest rate unchanged
TORONTO (Reuters) -The Bank of Canada on Wednesday held its benchmark interest rate at 2.75%. MARKET REACTION: The loonie was trading 0.3% lower at 1.3815 per U.S. dollar, or 72.39 U.S. cents, as the greenback notched broad-based gains. LINK: COMMENTS NICK REES, SENIOR FX MARKET ANALYST AT MONEX EUROPE LTD "While this latest decision to leave rates unchanged was as expected, the BoC retains an easing bias in its most recent set of communications. Any decision to resume cutting, however, is once again seemingly predicated on the Governing Council gaining more clarity over an uncertain outlook, suggesting to us that further rate cuts may be some time away yet. Bearing all that in mind, it is unsurprising to see the loonie treading water ahead of Governor Macklem's press conference." DOUG PORTER, CHIEF ECONOMIST AT BMO CAPITAL MARKETS "I actually thought there was a bone thrown to the doves, here. You know, they've certainly kept the door open to the possibility of further rate cuts if inflation moderates or the economy weakens." ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATES STRATEGY AT TD SECURITIES "The Bank of Canada is very wisely trying to leave as many options on the table here. Rather having just one scenario, they are opting for multiple scenarios. "What is very clear to me is that they are not willing to declare that the worst is precisely over here. There are some notes of caution despite the strong jobs numbers. They're not panicking, obviously, nor are they convinced that the economy is out of danger, and they're just trying to take a balanced approach as a result." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Calgary Herald
3 days ago
- Business
- Calgary Herald
'Absolutely crazy': Alberta could topple Ontario in new housing construction
This advertisement has not loaded yet, but your article continues below. Construction crews work on homes in Edmonton's Blatchford neighbourhood, Tuesday March 4, 2025. Photo by David Bloom / Postmedia file For the first time in more than 40 years, Alberta is on track to potentially build more homes than Ontario this year — despite having a much smaller population. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Calgary Herald ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Calgary Herald ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors In a recent note titled 'Go West, Young Homebuilders,' Bank of Montreal economists said Alberta is having a banner year in new housing construction. Based on data for the first six months of the year, the province is on pace to build 58,900 homes by the end of 2025. If it hit that mark, it would shatter the previous record and put the province within striking distance of Ontario, which has more than triple the population, according to Doug Porter, BMO's chief economist. Canada's largest province, meanwhile, is on track to build 60,200 homes this year — barely above the projection for Alberta, leaving the western province some leeway to potentially overtake Ontario. Alberta hasn't led the country in residential construction since at least the 1980s, during another housing boom, Porter said. Your weekday lunchtime roundup of curated links, news highlights, analysis and features. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again Alberta's current building phenomenon is surprising, he said, and probably a sign of its economic strength during a period of trade uncertainty. 'I actually do think the bigger story is the blast-off in Alberta,' Porter said. Canadian provinces have been hit differently by flip-flopping tariff pressures from the United States, Porter said. With its robust auto and steel industries, Ontario has likely been hit the hardest by the tariffs, he said. Alberta, on the other hand, managed to skirt some of the worst impacts, buoyed by population growth, a rapidly expanding housing market, and the energy sector. 'Whatever wild success that existed in Alberta in terms of new permits and new starts on the ground, the Ontario story is the exact opposite,' said Adil Kodian, executive vice-president of Rohit Group, which develops homes across the country. 'Supply coming on is absolutely crazy at the moment,' said Kodian, adding that the blistering pace of new construction — along with a sharp slowdown in immigration — is creating new worries. 'Now our biggest concern is oversupply.' Porter said that Alberta isn't the only province that should be looking at immigration. 'I think every housing market has to have a pretty keen eye trained on what's going on in immigration and population growth,' he said. 'The interesting thing is, Alberta's still got pretty robust population growth,' said Porter, noting many of the new people are coming from other provinces, notably Ontario and British Columbia. This advertisement has not loaded yet. This advertisement has not loaded yet, but your article continues below. With its roots in Edmonton, Rohit builds all over Alberta, and has also expanded to parts of British Columbia, Saskatchewan, and Ontario. 'The total cost of delivering a home in Alberta is far-far cheaper than Ontario,' said Kodian. He applauded measures taken at the provincial and municipal level to reduce red tape, which he said is helping to keep construction moving quickly and economically. Despite the tariffs, Kodian said the cost of development in Alberta hasn't changed all that much. 'What I would say is that the chaos and the fear of tariff imposed price increases are a lot more than actual tariff related price increases,' said Kodian. With costs so high across the board in Ontario, he said it's hard to tell whether tariffs are actually to blame for the heightened expenses. 'Honestly, costs are so high, at least in our experience and what we see in Ontario, that we have not clearly been able to tell whether the cost increases we are seeing are tariff related or just because it's Ontario.' Bookmark our website and support our journalism: Don't miss the news you need to know — add and to your bookmarks and sign up for our newsletters here. You can also support our journalism by becoming a digital subscriber. Subscribers gain unlimited access to The Edmonton Journal, Edmonton Sun, National Post and 13 other Canadian news sites. Support us by subscribing today: The Edmonton Journal | The Edmonton Sun.
Ottawa Citizen
3 days ago
- Business
- Ottawa Citizen
'Absolutely crazy': Alberta could topple Ontario in new housing construction
Article content For the first time in more than 40 years, Alberta is on track to potentially build more homes than Ontario this year — despite having a much smaller population. Article content In a recent note titled 'Go West, Young Homebuilders,' Bank of Montreal economists said Alberta is having a banner year in new housing construction. Article content Based on data for the first six months of the year, the province is on pace to build 58,900 homes by the end of 2025. If it hit that mark, it would shatter the previous record and put the province within striking distance of Ontario, which has more than triple the population, according to Doug Porter, BMO's chief economist. Article content Article content Canada's largest province, meanwhile, is on track to build 60,200 homes this year — barely above the projection for Alberta, leaving the western province some leeway to potentially overtake Ontario. Alberta hasn't led the country in residential construction since at least the 1980s, during another housing boom, Porter said. Article content Article content Alberta's current building phenomenon is surprising, he said, and probably a sign of its economic strength during a period of trade uncertainty. Article content 'I actually do think the bigger story is the blast-off in Alberta,' Porter said. Article content Canadian provinces have been hit differently by flip-flopping tariff pressures from the United States, Porter said. With its robust auto and steel industries, Ontario has likely been hit the hardest by the tariffs, he said. Alberta, on the other hand, managed to skirt some of the worst impacts, buoyed by population growth, a rapidly expanding housing market, and the energy sector. Article content Article content 'Whatever wild success that existed in Alberta in terms of new permits and new starts on the ground, the Ontario story is the exact opposite,' said Adil Kodian, executive vice-president of Rohit Group, which develops homes across the country. Article content Article content 'Supply coming on is absolutely crazy at the moment,' said Kodian, adding that the blistering pace of new construction — along with a sharp slowdown in immigration — is creating new worries. Article content 'Now our biggest concern is oversupply.' Article content Porter said that Alberta isn't the only province that should be looking at immigration. Article content 'I think every housing market has to have a pretty keen eye trained on what's going on in immigration and population growth,' he said. Article content 'The interesting thing is, Alberta's still got pretty robust population growth,' said Porter, noting many of the new people are coming from other provinces, notably Ontario and British Columbia.
Edmonton Journal
3 days ago
- Business
- Edmonton Journal
'Absolutely crazy': Alberta could topple Ontario in new housing construction
Article content For the first time in more than 40 years, Alberta is on track to potentially build more homes than Ontario this year — despite having a much smaller population. Article content In a recent note titled 'Go West, Young Homebuilders,' Bank of Montreal economists said Alberta is having a banner year in new housing construction. Article content Based on data for the first six months of the year, the province is on pace to build 58,900 homes by the end of 2025. If it hit that mark, it would shatter the previous record and put the province within striking distance of Ontario, which has more than triple the population, according to Doug Porter, BMO's chief economist. Article content Canada's largest province, meanwhile, is on track to build 60,200 homes this year — barely above the projection for Alberta, leaving the western province some leeway to potentially overtake Ontario. Alberta hasn't led the country in residential construction since at least the 1980s, during another housing boom, Porter said. Article content Article content Alberta's current building phenomenon is surprising, he said, and probably a sign of its economic strength during a period of trade uncertainty. Article content 'I actually do think the bigger story is the blast-off in Alberta,' Porter said. Article content Canadian provinces have been hit differently by flip-flopping tariff pressures from the United States, Porter said. With its robust auto and steel industries, Ontario has likely been hit the hardest by the tariffs, he said. Alberta, on the other hand, managed to skirt some of the worst impacts, buoyed by population growth, a rapidly expanding housing market, and the energy sector. Article content Article content 'Whatever wild success that existed in Alberta in terms of new permits and new starts on the ground, the Ontario story is the exact opposite,' said Adil Kodian, executive vice-president of Rohit Group, which develops homes across the country. Article content Article content 'Supply coming on is absolutely crazy at the moment,' said Kodian, adding that the blistering pace of new construction — along with a sharp slowdown in immigration — is creating new worries. Article content 'Now our biggest concern is oversupply.' Article content 'I think every housing market has to have a pretty keen eye trained on what's going on in immigration and population growth,' he said. Article content 'The interesting thing is, Alberta's still got pretty robust population growth,' said Porter, noting many of the new people are coming from other provinces, notably Ontario and British Columbia.
Yahoo
3 days ago
- Business
- Yahoo
Bank of Canada expected to hold interest rates steady for the third time
By Promit Mukherjee OTTAWA (Reuters) -The Bank of Canada on Wednesday is likely to keep interest rates unchanged at 2.75% for the third time, economists and market analysts predict, as firm core inflation and robust job growth lessen the urgency to ease rates. The central bank, economists and businesses are increasingly hoping that the worst-case scenario from the impact of President Donald Trump's tariffs is over. "Core inflation is still a little bit hot for the Bank of Canada's comfort," said Doug Porter, chief economist at BMO Capital Markets. "And on top of that, most of the economic data we have seen in recent weeks and even months has been a little less bad than expected," he added, saying that the chances of a continued pause in rates are much more likely. The spillover effects from high tariffs on steel, aluminum and automobiles have largely been confined within those markets while other sectors posted job growth in June. The economy added 83,100 new jobs in June, the first net increase since January. The unemployment rate fell to 6.9% in June with surprise job growth in sectors including wholesale and retail trade, as well as manufacturing, healthcare and social assistance. At the same time, the core measures of inflation that the BoC closely tracks have been persistently at or above 3%, the upper end of the bank's 1%-3% inflation target range. "The Bank of Canada, being a single mandate central bank, cares about inflation the most," said David Doyle, head of economics at Macquarie. Money markets are pricing in a 7%-8% probability of a rate cut this week. A Reuters poll of 28 economists showed that the lack of clarity around tariffs, combined with recent data on inflation and jobs, will keep the BoC on the sidelines this week. The poll was conducted from July 21 to July 25. Nearly two-thirds of the economists surveyed, 18 of 28, forecast that the BoC would cut its policy rate by 25 basis points in September to 2.50%. More than 60% of the economists predicted a second 25-bps cut before yearend. The BoC was the first central bank among the G7 countries to start cutting rates in June last year and has been the most aggressive since then in its easing cycle. It has reduced rates by 225 basis points between June last year and March. BoC Governor Tiff Macklem will announce the governing council's decision at 9:45 a.m. ET (1345 GMT) on Wednesday. The bank will also release its quarterly monetary policy report, which usually contains its predictions on the economy and inflation. However, the BoC changed tack in April for the first time since the pandemic and offered two different scenarios for the economy as uncertainty on the magnitude and the timing of tariffs have complicated forecasting, the bank said. "Things are still tremendously uncertain, but it feels like the uncertainty has come down a little bit since then. I would be surprised if they didn't present formal forecasts," Doyle from Macquarie said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
