The Canadian economy seems to have bottomed out and be on the rebound, growing by 0.2% in the fourth quarter of last year and by 1% on an annualized basis, exceeding expectations. The growth gives the Bank of Canada time to see more sustained evidence of inflation moderation before cutting rates. ... READ MORE >
Natural gas and the move toward energy self-sufficiency
The major move toward energy self-sufficiency in the United States and in Europe in recent years has been the development of the U.S. natural gas industry and the export of liquefied natural gas to our allies. Natural gas accounts for roughly 30% of the energy used domestically, and the U.S. is now ... READ MORE >
Canada’s inflation excluding shelter hit target in January
Canada's consumer price index report for January brought good news for consumers, businesses and the Bank of Canada alike. CPI dropped to 2.9%, led by lower year-over-year figures in gasoline prices. On a monthly basis, prices stayed flat. Consumers breathed a sigh of relief as grocery prices grew ... READ MORE >
Canada’s job market exceeded expectations in January, adding 37,000 jobs
The Canadian economy refuses to go down without a fight. Nearly two years into a cycle of steep interest rate increases and after half a year with the policy rate at 5%, the economy added 37,000 jobs in January, far exceeding expectations. The unemployment rate fell for the first time in over a ... READ MORE >
Canada financial conditions update: Stabilization and recovery
Canada’s financial conditions remain underwater for now, signaling slow growth in the first and second quarters of the year after a contraction last year in the third and fourth quarters. As the Bank of Canada said in its December policy statement, higher interest rates are restraining spending. ... READ MORE >
Canadian economy grew more than expected in November
The Canadian economy expanded in November by 0.2% on a month-over-month basis, slightly exceeding expectations after staying flat for three months. The goods-producing industries were responsible for most of the expansion, growing by 0.6%, the highest rate since January last year. Meanwhile, the ... READ MORE >
The case for the Bank of Canada to accelerate rate cuts
With restrictive financial conditions, high interest rates and still-elevated inflation, the Canadian economy has come to a standstill and is now at a tipping point. The Bank of Canada’s decisions over the next few months could influence whether the economy arrives at a soft landing or falls into a ... READ MORE >
Bank of Canada holds rates steady at 5% amid weak growth
As expected, the Bank of Canada on Wednesday maintained its policy rate at 5 per cent and continued its restrictive monetary policies. At the same time, though, its public statements signed a more dovish tone. In softening its rhetoric, the central bank noted the slowdown in the global and domestic ... READ MORE >
Canada’s inflation accelerated to 3.4% in December
December’s Consumer Price Index report for Canada is another bump in the road in the path toward price stability. The overall index rose by 3.4% on a year-over-year basis in December, up from 3.1% in November, primarily because of the base effect, or comparisons to a year ago. Prices dropped from ... READ MORE >
Canada failed to add jobs in December
The Canadian economy is slipping into no-growth territory. In December, Canada lost 23,500 full-time jobs, replaced by a gain of 23,600 part-time positions. Still, the mixed signals that dominated the latter half of last year have not given way to more unanimous signs of a stalling economy. The ... READ MORE >