Canada’s economy could benefit from strong growth in the United States during a second Trump administration. The U.S. dollar surged on Wednesday against all major currencies as promises of generous tax cuts and lax regulations attract more capital into the U.S. And while the rising tide might not ... READ MORE >
Canada
Financial conditions improve in Canada and U.S., setting stage for growth
Financial conditions continue to improve both in Canada and in the United States, signaling stability in markets and setting the groundwork for economic growth. RSM's proprietary financial conditions indexes are based on the level of risk or accommodation in four asset markets: stocks, money markets, ... READ MORE >
Bank of Canada cuts rates by half point amid slow growth
The Bank of Canada reduced its policy rate by 50 basis points to 3.75 per cent on Wednesday as growth replaces inflation as the central bank's primary economic concern. After five consecutive quarters of declining per-capita gross domestic product growth, Canada’s sluggish economy suggests that the ... READ MORE >
Canada’s Consumer Price Index falls to 1.6%; calling for more rate cuts
Canada’s Consumer Price Index fell to 1.6%, the smallest increase since February 2021, mainly thanks to lower gasoline prices. On a monthly basis, CPI fell 0.4% in September after falling 0.2% in August, according to data released by Statistics Canada on Tuesday; both declines were due to lower ... READ MORE >
Canadian firms in an era of a higher cost of capital
Even with the recent uptick in hiring, the Canadian economy remains in a slump, with sparse activity in the financial markets, slow hiring and lackluster investments. In response, the Bank of Canada is cutting interest rates—three times since June, with more reductions on the way. It’s only a ... READ MORE >
Canada added 47,000 jobs in September as jobless rate fell to 6.5%
Canada's economy showed resilience in September, adding 47,000 jobs as the unemployment rate fell to 6.5 per cent—the first drop since January. The increase in jobs, the largest since April, gives confidence that Canada can maintain a soft landing until the Bank of Canada's rate cuts, which began in ... READ MORE >
New Canadian regulation is set to help level the internet playing field
Canada regulators are pushing for increased competition in the internet space with a new regulation designed to give consumers more choice and competitive pricing, while offering a leg up to smaller telecoms providers seeking to grow their share of the market for internet service. On Aug. 13, the ... READ MORE >
Canada’s consumer price index hits 2 per cent target
Canada's consumer price index hit the pivotal 2 per cent target in August as inflation continued a downward trajectory, according to Statistics Canada data released on Tuesday. The drop is thanks to lower gasoline prices compared to a year ago. The Bank of Canada will need to continue rate cuts amid ... READ MORE >
Immigration and the rebalancing of the Canadian economy
The main risk underlying the Canadian economy has shifted from high inflation to high unemployment and slowing growth. The government’s recent restrictions on immigration reflect its attempt to respond to these shifting dynamics. But while these restrictions could temporarily curb unemployment and ... READ MORE >
Canada’s job market continued to cool in August
The data in Canada's labour survey for August paints a picture of a cooling job market as the economy added a mere 22,000 jobs and the unemployment rate rose to 6.6 per cent. The employment rate rose 0.1 percentage points to 60.8 per cent. More rate cuts are needed, and it will take time for the recent ... READ MORE >