Canadian real estate leaders must decide how to act in 2025 as further interest rate cuts loom, stricter immigration policies take effect and the federal government’s 10-year bonds are up. Real estate leaders view these challenges through a lens of volatility, uncertainty, complexity and ambiguity ... READ MORE >
Bank of Canada
Bank of Canada cuts interest rate to 3.25% as focus shifts to gap with U.S.
The Bank of Canada lowered its interest rate to 3.25 per cent — an overdue move out of restrictive territory given that inflation has largely been tamed. Expect more rate cuts in early 2025 to get the economy onto an expansionary trajectory. The policy rate should come down to 2.75 per cent within the ... READ MORE >
Canada’s job market cools as unemployment rises to 6.8%
Canada added 51,000 jobs in November, double the expected number, but the overall picture does not look rosy. The unemployment rate increased by 0.3 percentage points to 6.8 per cent — the highest since January 2017 — as more people looked for work. A slow job market finally hit wages, as wage growth ... READ MORE >
Year ahead in Canada: Return to growth as rate cuts take hold
Price stability will fuel economic expansion in 2025 as the Bank of Canada reduces interest rates to a low of 2.75 per cent within the first half of the year. The rate cuts will encourage investment and risk-taking, reduce financing costs on Canada’s elevated debt and put more cash in consumers’ ... READ MORE >
Canada’s prices for services and shelter decelerated in October
Canada’s consumer price index accelerated in October, but that increase will not deter a rate cut by the Bank of Canada in December, though the size of the cut is up for debate. Canada’s CPI accelerated to 2.0 per cent, up from 1.6 per cent in September, because of a smaller decline in gasoline prices ... READ MORE >
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 >
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 >
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 >