TSX:REI.UN - Post by User
Comment by
born2tradeon May 12, 2022 1:36pm
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Post# 34678507
RE:RE:RE:RE:RE:Sudden hatred for all reits
RE:RE:RE:RE:RE:Sudden hatred for all reitsYou seem to assume that BOC main mandate is to protect the home owners from decline in sales and home prices. This view is different from what BOC governor has called out several times. Mandate is to control inflation even if it requires being forceful . If supply chain issues and commodity prices remain elevated and probability is high , they will remain elevated for next 8-12 months , then inflation will be much higher than 2% target . Higher inflation is more damaging to the people and to the economy so BOC has not many options but to increase the rate.
Housing market will come down to earth eventually whenever cheap money ends and even 20-25% correction will take it to the pre-pendemic level.
canadian wrote: No way it's gonna be more than 2%. Already home sales are down. If it goes beyond 2%, house sales will collapse. https://financialpost.com/executive/executive-summary/posthaste-the-way-the-housing-market-is-stalling-the-bank-of-canada-may-have-to-hit-the-brakes-sooner-than-expected