Last updated: October 20 2010
The Bank of Canada released a Monetary Policy Report summary today, outlining its outlook for the Canadian economy based on data received to October 15, 2010. Of significance to the upside are higher commodity prices, a stronger-than anticipated recovery in the US and the possibility of greater-than-projected momentum in the Canadian household sectors. However, three downside risks offsetting those factors include Canada's international competitiveness, global growth prospects, and a greater-than-anticipated correction in the Canadian housing market.
What does this mean to the financial services sector and their clients? According to Mark Carney, Governor of the Bank of Canada, Canadians can respond by managing debt and boosting productivity. The Bank in the meantime will try to keep inflation low and stable.
And debit is high, according to several studies including Where the Money is Now by the CGA Association of Canada, released in May 2010: Key findings included:
Click here to read the Monitory Summary Report. Click here to read the CGA report.
Strategies for advisors in working with their clients, from a year end planning point of view will be discussed in a peer-to-peer learning exchange when the Knowledge Bureau visits major centre across Canada November 3 to 9 with its Distinguished Advisor Workshops. RSVP by calling Shannon or Carol at 1-866-953-4769.