(Editor's note: This post has been updated with the latest from the federal government's fall economic statement) Chrystia Freeland’s resignation as Canada’s finance minister highlights increasing uncertainty in the country's political environment as financial challenges loom in 2025. Reaction was ... READ MORE >
Canada inflation
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 >
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 >
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 >
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 >
Canada’s CPI in June shows disinflation and suggests rate cut
June’s inflation report in Canada confirms that the economy is on a disinflationary trajectory as headline inflation dropped to 2.7% because of slower growth in gasoline prices. On a monthly basis, the consumer price index fell by 0.1% after a 0.6% increase in May. On a seasonally adjusted monthly ... READ MORE >
Canada’s economic outlook: The dawn of recovery
The Canadian economy will turn a corner toward recovery in the second half of the year, setting the stage for a true revival next year. Although Canada has managed to avoid a recession, the lack of growth has been discouraging as elevated interest rates have taken their toll. The good news is ... READ MORE >
Canada’s inflation rises to 2.9% but rate cut remains on the table
Disinflation will be the theme in the Canadian economy for the rest of the year, despite the inflation uptick in May. Inflation rose to 2.9 per cent on a year-over-year basis in May, with a 0.6 per cent monthly increase, Statistics Canada reported on Tuesday. Core inflation measures also rose slightly ... READ MORE >