This will be spurred by the seemingly inexorable growth of housing prices in major markets like Toronto, Vancouver, and Montreal, a trend that will impede economic growth by cutting into other categories of household spending, McKay said.
“We’re increasingly becoming concerned that, with the lack of supply of labour, the lack of supply of goods, the cost of energy increasing, that we’ll consume these savings — and will the spending power just lead to an inflationary environment without growth, or, in the worst case, stagflation?” McKay said. “I think that risk has increased.”
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