As the Bank of Canada tries to tame inflation and simultaneously guide the economy to a soft landing, most market participants are skeptical that it can pull off the feat. After months of steep interest rate increases, the higher borrowing costs are only beginning to be felt in Canada's real ... READ MORE >
Canadian economy
RSM’s economic outlook for Canada in eight charts
Economies respond to financial conditions, which are determined by market expectations for monetary policy. With inflation still elevated and demand surging in Canada, we expect the Bank of Canada to continue raising interest rates to cool an overheating economy. While the Canadian economy may ... READ MORE >
Bank of Canada announces smaller-than-expected 50-basis-point hike
The Bank of Canada on Wednesday dialed back the pace of rate hikes, announcing a 50-basis-point hike and bringing the policy rate to 3.75%. This marks a 3.5% increase in just eight months, since the first rate hike in March. This smaller-than-expected rate hike comes as recession fears increase, and ... READ MORE >
After a strong recovery in Canada, economic headwinds set in
The Canadian economy has had a robust recovery from the lockdowns of the pandemic as pent-up consumer demand and generous government spending have fueled growth. But now with rising inflation, especially in food and energy prices, and a historically tight labour market, that growth is ... READ MORE >
Our economic outlook for Canada in 2022
Canada’s economy had a bumpy ride in the past year, as the promise of mass vaccinations was followed by supply chain disruptions, a global energy crisis and rising inflation. Looking ahead to next year, we see a Canadian economy continuing to recover, even as businesses and consumers contend with ... READ MORE >
CHART OF THE DAY: Spillover effects of U.S. stimulus programs on Canada’s commodity and energy prices
Financial markets are already pricing in a pickup in U.S. growth and an increase in demand for commodities and energy. This comes as U.S. vaccinations are taking off and as negotiations begin on its massive infrastructure program. With the service sector still struggling, U.S. manufacturing looks to be ... READ MORE >
Second wave of the pandemic devastates the Canadian labor market
The surge in coronavirus infections in Canada this winter has taken a heavy toll on the economy, which has only added to the urgency for a vaccine to be widely distributed. Another 213,000 jobs were lost in January, an acceleration over December’s decline, according to data recently released by ... READ MORE >
Why Biden’s $1.9 trillion stimulus package would be a boon for Canada
Joe Biden’s proposed $1.9 trillion fiscal aid package would not only provide a significant stimulus for the United States, but it would also have a big effect on the Canadian economy. Why should Canadians care? In short, it’s because the Canadian economy cannot help but be affected by its neighbor ... READ MORE >
Trade holds the key to Canada’s economic fortunes
Canada is a trading nation. In fact, the Canadian economy is one of the most dependent on trade among large, developed nations. While Canada’s recovery from the pandemic has been robust, its longer-term economic prospects will depend greatly on the expansion of global trade. The incoming Biden ... READ MORE >