Inflation declined by 0.3% in August for the second monthly decline in a row thanks to cooling gasoline and energy prices, according to data released by Statistics Canada on Tuesday. The consumer price index rose by 7.0% in August on a year-over-year basis, down from a 7.6% gain in July. The easing ... READ MORE >
Bank of Canada
Canada housing starts fall amid rising rates
Canada’s housing starts fell to 267,443 in August, a 3% drop from July, continuing the decline in the housing sector because of rising interest rates, according to data released on Friday by the Canada Mortgage and Housing Corporation. The drop, which stemmed entirely from starts of multiunit ... READ MORE >
Canada’s jobless rate rises off its record low
Canada lost 40,000 jobs in August, bringing the unemployment rate up to 5.4% from its record low in July as construction and education led the declines. August’s rate is the highest in seven months, and the first increase since April 2021. The change in the job numbers prompts a question: Is the ... READ MORE >
Bank of Canada increases policy rate to 3.25%
The Bank of Canada increased its policy rate by 75 basis points on Wednesday, bringing the overnight rate to 3.25%, and said that it would continue to reduce its balance sheet. The rate hike came as no surprise, with inflation still pervasive. While economic growth has moderated abroad and at ... READ MORE >
Housing proved a drag on Canada’s economy in the second quarter
Canada’s real gross domestic product rose by 0.1% in June from May amid a slumping housing sector, according to data released by Statistics Canada on Wednesday. For the second quarter overall, the economy posted a 3.3% gain, which fell short of expectations. While the economy is not in recession, the ... READ MORE >
Canada’s jobs fall in July as unemployment rate remains steady
Canada’s economy shed 31,000 jobs in July while the unemployment rate remained at a historic low of 4.9%, confirming what the strong gross domestic product numbers have been showing: The economy is not in recession. The low unemployment rate, released by Statistics Canada on Friday, furthers the ... READ MORE >
Canada inflation hits 8.1% but shows signs of softening
Inflation reached 8.1% in June in Canada, the highest since January 1983, although the pace of the increase eased compared to previous months, according to data released by Statistics Canada on Wednesday. On a monthly basis, the consumer price index rose by 0.7% in June, down from 1.4% in May. More ... READ MORE >
Canadian housing starts fall slightly in a sign of possible cooling
Housing starts in Canada fell to 273,800 in May, a 3% drop from April, according to data released by the Canadian Mortgage and Housing Corporation on Monday. Although housing starts are still much higher than during the pre-pandemic era, the slight decline might be a preview of the construction ... READ MORE >
Bank of Canada raises its policy rate by 1% to tame inflation
The Bank of Canada announced a 100-basis-point rate hike on Wednesday, the largest increase since 1998, in an attempt to restore price stability amid rising inflation expectations and wage growth. The announcement brought the policy rate to 2.5%. We now expect a 75 basis-point hike at the September ... READ MORE >
As rates rise, Canada’s construction industry enters a new phase
In response to rising inflation, the Bank of Canada began a series of aggressive rate hikes this year, bringing its policy rate from an effective lower bound of 0.25% to 1.5% in June. One of the industries hit hardest by rising interest rates has been construction, and this slowdown now threatens to ... READ MORE >