Posthaste: What to expect from inflation, interest rates and the housing market in 2023

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Posthaste: Stubborn inflation, high interest rates, falling home prices to persist in 2023, BMO says

predicting the top economic trends for 2023. A mild recession and lower than normal Canadian dollar are also in the cards.

shows. That reflects an increase in the price of services, which BMO said are now bearing the brunt of inflation. That’s a problem, because price increases in services are historically much more difficult to correct.Article content “We believe the main story is that there will be no scope for rate cuts in the year ahead, and that central banks will maintain these relatively high rates until underlying inflation is truly cracked — and that process will take time,” chief economist Douglas Porter wrote in the note. “We don’t look for rate relief until 2024.”Article content

 

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