Canadians can soon expect the largest housing market correction in over 40 years, the Royal Bank of Canada predicts in a new report.
Robert Hogue, an analyst at RBC Economics and the author of the report, said surging inflation has caused RBC to change its former economic forecast to a more severe alternative.
“The economic landscape is rapidly becoming less hospitable for Canada’s housing market,” Hogue said in the report. “With inflation touching four-decade highs—and threatening to climb even further in the near term—the Bank of Canada is now embarked on a more aggressive course that we believe will take its policy interest rate to restrictive levels by the fall.”…