The Traderszone Network

Published in TZ Latest News 21 January, 2015 by The TZ Newswire Staff

Canada surprise rate cut keeps housing party going

A surprise move by the Bank of Canada to cut interest rates on Wednesday could reignite Canada’s housing market and renew fears of a bubble, just as the market had finally begun to cool after a five-year run to record prices. Canadian housing prices have risen 36.8 percent on average since mid-2009 and the average home price has doubled over the past decade. Last month, the central bank said the housing market could be overvalued by as much as 30 percent. The energy sector makes up about 11 percent of Canada’s GDP and about one quarter of Canadian exports in 2013.