Possible scenario
Policy Turns Nonmonetary
30% Chance
Because the Bank of Canada says rates are not the right tool to target home prices, pressure shifts to Ottawa, provinces and municipalities. The policy mix focuses on supply funding, zoning changes, tax rules and immigration settings rather than monetary tightening.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- Copper Up
Secondary impacts
- Non-Energy Materials +0.4%
- Industrials +0.4%
- Consumer Cyclicals -0.2%
Portfolio impact
S&P 500-0.0%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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