BoC predicts lower house prices due to oil declines
The economy will grow by around a quarter of a per cent less in 2015 due to the low price of oil. Bank of Canada governor Stephen Poloz says that it may be a small figure but it “matters a lot” and he predicts that the jobs and housing markets may well suffer. Poloz says that there may be a “change in the terms of the balance in the price of housing” during next year. The overall assessment of the lower oil price is that it won’t cause long term damage and the BoC expects to be on target for full capacity in the economy by the second half of 2016.