The slowdown in the Canadian housing sector shows the risks of higher interest rates

OTTAWA – Canada’s 12-year property boom appears to be coming to an end after the Bank of Canada’s recent interest rate increases, which led to a sharp decline in residential property sales and a slowdown in house price gains.

The stagnation in one of the main drivers of growth in the Canadian economy illustrates the trade-offs faced by countries as central bankers race to quell hyperinflation by raising interest rates.

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