Canada’s housing supply has faced chronic shortages in recent years as households and the economy are held back by a lack of available and affordable places to live. Many proposals have been offered, from overhauling regulations to bolstering financial incentives. But one factor often gets ... READ MORE >
Canada
February’s inflation in Canada makes case for rate cuts
Canada's consumer price index fell to 2.8% February, marking the second consecutive month of decline and bolstering the case for the Bank of Canada to cut rates. The decline wasn't limited to just the headline number. Core measures of inflation eased as well: Trimmed CPI, which excludes extreme price ... READ MORE >
Canada’s jobs report offers mixed messages on rates
February’s jobs report for Canada did little to sway the Bank of Canada’s likelihood to begin cutting rates in June. The data released on Friday continues to send mixed messages to those who make monetary policy, a recurring theme for the past six months as the economy hangs on but does not ... READ MORE >
Bank of Canada maintains interest rate at 5%
The Bank of Canada kept its policy rate unchanged at 5% for the fifth time in a row as it continued to wait for inflation to further moderate. Canada is in the home stretch in its path to price stability. It will be a few more months before the first rate cut, which we expect to occur in June. There ... READ MORE >
Canadian economy grew by 1%, ending 2023 on a positive note
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 >
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 >