Canada’s rail work stoppage could disrupt Canada’s supply chains, costing billions of dollars and tens of thousands of jobs. Supply chain snarl could also put upward pressures on prices just as inflation returns to 2.5%. But on a broader scale, the impact would be minimal and short-lived if workers ... READ MORE >
Canada
Canada’s inflation fell to 2.5 per cent, solidifying case for rate cut
Canada’s consumer price index fell to 2.5 per cent in July, the lowest level since March 2021, solidifying the case for the Bank of Canada to cut its policy rate this month. The disinflation was broad-based and included components from food to recreation and, most notably, shelter. All measures of ... READ MORE >
Canada’s weak job market supports further rate cuts
Canada’s July jobs report spelled out the need for more rate cuts as the economy shed 2,800 jobs, according to data released Friday by Statistics Canada. The unemployment rate stayed steady at 6.4% as labour force participation fell in a challenging market. Some youth and women had stopped looking for ... READ MORE >
Bank of Canada reduces rate to 4.5 per cent amid disinflation
There was little surprise in the Bank of Canada’s announcement on Wednesday when the central bank reduced its policy rate by 25 basis points to 4.5 per cent. The tone of the central bank's statement was notably dovish and marked a departure from a hawkish or cautionary tone that persisted over the past ... READ MORE >
Digital transformation and Canada’s public sector
With Canada’s economy mired in a slowdown, its stagnating productivity has increasingly become a drag on growth. Nowhere is this more evident than in the public sector, which makes up a significant portion of the economy yet remains plagued by archaic systems that hamper service delivery and hold back ... READ MORE >
Canada’s CPI in June shows disinflation and suggests rate cut
June’s inflation report in Canada confirms that the economy is on a disinflationary trajectory as headline inflation dropped to 2.7% because of slower growth in gasoline prices. On a monthly basis, the consumer price index fell by 0.1% after a 0.6% increase in May. On a seasonally adjusted monthly ... READ MORE >
Canada’s economic outlook: The dawn of recovery
The Canadian economy will turn a corner toward recovery in the second half of the year, setting the stage for a true revival next year. Although Canada has managed to avoid a recession, the lack of growth has been discouraging as elevated interest rates have taken their toll. The good news is ... READ MORE >
Canada’s unemployment rate rose to 6.4 per cent, calling for further rate cuts
Canada's jobs report for June underscores the weakness of the labour market and calls for another rate cut in July. The economy lost 1,400 jobs in June. The unemployment rate jumped by 0.2 percentage points to 6.4 per cent and the employment rate fell by 0.2 percentage points to 61.1 per cent. Job ... READ MORE >
Canada’s inflation rises to 2.9% but rate cut remains on the table
Disinflation will be the theme in the Canadian economy for the rest of the year, despite the inflation uptick in May. Inflation rose to 2.9 per cent on a year-over-year basis in May, with a 0.6 per cent monthly increase, Statistics Canada reported on Tuesday. Core inflation measures also rose slightly ... READ MORE >
Canada’s unemployment rate rises to 6.2 per cent, bolstering case for further rate cuts
Canada’s jobs report for May showed that the labour market continued to soften as the economy added 27,000 jobs and the unemployment rate inched up to 6.2%, a full percentage point up from a year earlier. The employment rate fell by 0.1 percentage point to 61.3% While it’s still too early to say, the ... READ MORE >