REPORT: CENTRAL BANK MUST PUT 'GENIE BACK IN THE BOTTLE'
Jul 05, 2017
By Bob Komsic
As consumers and the markets anxiously await the Bank of Canada’s interest rate decision next week … the Fraser Institute says the current housing bubble in Ontario is a side-effect of the central bank’s own policy.
Author Philip Cross says the bank’s tried to engineer an export-led recovery, through lower interest rates and a lower dollar, but instead of an export-led boom, the province got a housing bubble.
The former chief economic analyst for Statistics Canada says ”that’s not what the Bank of Canada wanted, but somehow they’re going to have to put that genie back in the bottle”.
Cross warns reliance on housing without growth in manufacturing or business investment is the real threat to Ontario’s economy.