At first glance, the reappearance of “sold over asking” real estate signs may seem like an encouraging signal for the Canadian economy, especially for highly invested homeowners who have watched prices fall from last year’s highs.
But a growing number of economists worry that a series of recent indicators, the latest being Wednesday’s rise in Canadian retail sales, may instead be a red flag for central bankers, goading them into more rate hikes that could ultimately make many Canadians feel miserable.
With each new smidgen of optimistic data, money market traders point to a rising chance that central bankers will raise rates again. A growing number
