In line with the banks’ preference for floating-rate debt – which can be better matched to banks’ floating-rate liabilities – the share of floating-rate semis in recent years has increased. Consequently, the share of floating-rate notes in the outstanding stock of semis has increased from 2 per cent at the end of 2012 to around 10 per cent at present.
But the growth in Quebec’s labour force is slower than that in British Columbia, contributing to relatively stronger wage growth. Interestingly, we also see the impact of labour supply adjustment in regional housing markets. How the labour supply adjusts in the face of rising demand conditions is an issue we are watching closely because it affects the evolution of our economic capacity.