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Slowdown in Canada’s Housing Sector Shows Risk of Higher Rates
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OTTAWA—Canada’s 12-year real-estate boom appears to be coming to an end following the Bank of Canada’s recent rate increases, which have triggered a sharp decline in residential sales and a slowdown in home-price gains.
The slack in one of the Canadian economy’s main engines of growth illustrates the trade-offs faced in countries where central bankers are racing to douse red-hot inflation by raising interest rates.
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