Markets React to Tariff Rollbacks

Wall Street saw a positive boost after Trump signaled a step back from aggressive tariffs. This gives multinational companies breathing room to adjust pricing and protect profit margins.

Canadian Dollar & Border Policies

The US dollar briefly dipped, but the Canadian dollar remains significantly lower. While Canada has pledged tighter border restrictions, the US’s immigration challenges don’t directly impact our economy.

Canadians Are Planning to Move

The Bank of Canada’s Q4 survey reveals that, despite recession fears:

• 22.4% of respondents see a 50%+ chance of moving in the next year (up from 21.1% in Q3).
• 13.5% plan to sell their home (up from 11.4%).
• 19.9% of renters are considering buying a home (up from 16.9%).

Interest Rate Expectations & Housing

The Bank of Canada links rising homebuying interest to anticipated rate cuts in 2025. However, many buyers remain cautious, with only a 50% probability of following through on their plans.

Inflation & Consumer Spending

The good news? Inflation expectations are returning to historical norms!

• Food & gas price expectations remain steady.
• Rent price expectations have eased (but remain above pre-pandemic levels).
• For the first time since 2021, Canadians expect spending to outpace inflation.

🇺🇸 US Uncertainty & Canada’s Future
The new US administration brings economic uncertainty, but experts predict the Bank of Canada will steer the economy toward stable growth by 2026.

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