The Bank of Canada's pivot has finally arrived. After years of raising interest rates and then keeping them elevated, the Bank of Canada dropped the policy rate by 25 basis points on Wednesday, signaling a new period of recovery and growth. It was the first rate change for the Bank of Canada ... READ MORE >
Bank of Canada
Bank of Canada preview: A rate cut is desperately needed
The Bank of Canada needs to announce rate cuts during its June 5 meeting to spur economic growth. Any further delay and the bank would risk making a policy error and undermining Canada’s growth outlook. A 25-basis-point rate cut would kickstart the easing cycle, which will unfold gradually over the ... READ MORE >
Canada’s economy grew by 0.4%, bolstering case for rate cuts
Canada’s latest gross domestic product data adds to the mountain of evidence that a rate cut by the Bank of Canada should come at its meeting next week for the recovery to begin. The economy expanded by 0.4% in the first quarter after no change in the previous quarter, according to data released by ... READ MORE >
Global central bank outlook: Reducing rates to bolster growth
After two years of major central banks raising interest rates, the weighted global policy rate stands at a restrictive 7.2%. But with disinflation having taken hold around the world, it is time for central banks to reduce these rates. Usually, the Federal Reserve would lead the way. But with private ... READ MORE >
Canada’s inflation fell to 2.7%, bolstering case for June rate cut
Canada's consumer price index report for April offers a clear message for the Bank of Canada: A rate cut in June is a no brainer. Headline inflation fell to 2.7 per cent, within the 1 per cent to 3 per cent range for the fourth month in a row and the lowest since early 2021, a full year before this ... READ MORE >
Canadian economy showed resilience in April, adding 90,400 jobs
Resilience in the economy should not be a reason to delay rate cuts. While the stronger-than expected job report released on Friday speaks to the resilience of the Canadian economy, the long-term trend is an undeniable weakening in the job market. In April, Canada added 90,400 jobs, far surpassing ... READ MORE >
Bank of Canada holds its rate at 5% in dovish statement
The Bank of Canada held its policy rate at 5% at its meeting on Tuesday, as widely expected, while continuing its restrictive monetary policy of quantitative tightening. But the central bank made a marked shift in its statement, turning from a focus on inflation to one on growth with a decidedly ... READ MORE >
Bank of Canada preview: A dovish tone with rate cuts on horizon
The Bank of Canada will almost certainly leave its policy rate unchanged when it meets this week, but the tone of its statement will shift to dovish as bank officials recognize easing inflation, the slowing labour market and stagnant growth. We expect that the central bank's first rate cut will occur ... READ MORE >
Canada’s unemployment rate surpasses 6% for the first time in over two years
To see why rate cuts are coming in Canada, look no further than the March job report. The unemployment rate reached 6.1%, surpassing 6% for the first time in over two years, according to Statistics Canada on Friday. While Canada has added more than 300,000 jobs over the past year, including a loss of ... READ MORE >
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 >