The DLI Is Pushing Higher, Suggesting That the Quebec Economy Is on the Road to Recovery June 3, 2024

There are clear signs that the Quebec economy is on the road to recovery, and real also seems to be headed in the same direction. After a few months of volatility due to strikes in the healthcare and education sectors, Quebec's economy now looks to be on more solid ground. In fact, real External link. went up 0.2% in February.

The 's rebound gives reason for optimism, especially now that Canadian interest rates are poised to start coming down. That said, rates are restrictively high at present. Posted 1-year and 5-year fixed mortgage rates are around 8.0% and 6.5% respectively. According to our forecastsExternal link. , declining long-term bond yields could lead to a slight easing in fixed mortgage rates. Meanwhile, variable mortgage and personal line of credit rates will come down at the same pace as the Bank of Canada's key interest rate.