I expect current tailwinds to boost the neutral rate gradually over the medium term but leave little imprint on the long-run neutral rate. The short-run level of the neutral rate should rise gradually because the forces that are moving the economy from headwinds to tailwinds are likely to play out gradually.
This means that as the situation stabilizes in Toronto and Vancouver, the Canadian housing sector should return to growth overall later this year. On top of this, mortgage rates have eased in the wake of a drop in global bond yields.