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
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 >
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 >
Bank of Canada cuts its policy rate to 4.25 per cent
The Bank of Canada reduced its overnight rate to 4.25 per cent amid cooling inflation and soft growth. The central bank's dovish statement went so far as to indicate that more rate cuts are coming as inflation continues to decline toward the 2 per cent goal next year. Now, with unemployment rising in a ... READ MORE >
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 >