CBC: Higher oil prices could give Ottawa a windfall in the next budget
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Question
Why does a higher oil price matter for the federal budget right now?
Insight
Luxmore thinksBecause the spring economic update was built on a lower oil-price assumption than the market is currently trading at, which could leave Ottawa with extra fiscal room.
CBC News reports that global energy markets remain volatile as disruption in the Strait of Hormuz keeps oil prices elevated.
Editor's Comment
If oil stays above the federal forecast, Ottawa’s “extra room” could translate into more spending or targeted relief—both of which can keep demand firmer than expected. For Greater Vancouver housing, that matters less through local oil exposure and more through the inflation-and-rates channel: sustained energy-driven inflation can delay rate cuts, while a fiscal windfall that boosts stimulus can also work against disinflation. Net: higher oil doesn’t automatically mean cheaper borrowing ahead, so buyers and sellers should stay cautious about assuming a quick drop in mortgage rates.