Policy rate cuts by the Bank of Canada and the U.S. Federal Reserve are in response to both countries’ economies absorbing adverse policy shocks along with a slowing pace of hiring and wage growth. … READ MORE >
Joseph Brusuelas
Bank of Canada cuts interest rate again in attempt to spur sluggish economy
Canada’s economy is slowing to the point that the Bank of Canada was comfortable making another interest-rate cut as it lowered its policy rate to 2.25 per cent. … READ MORE >
Market Minute: In Argentina bailout, conditionality and collateral are absent
The Argentine peso lost 10% of its value in the first two weeks of October, pushing the overnight interest rate to 157%. … READ MORE >
Canada’s economy slowing as major free-trade renegotiation looms
Canada’s subdued economic activity and the drop in inflation despite ongoing tariffs imply that the Bank of Canada could cut interest rates again this year. … READ MORE >
Bank of Canada cuts interest rate to 2.5% amid economic, labour challenges
The Bank of Canada cut its key interest rate to 2.5 per cent as a slowing economy and rising unemployment likely contributed to the unexpected policy action. … READ MORE >
Market Minute: Do falling heavy truck sales indicate recession?
Since 1979, a collapse in sales of heavy trucks has coincided with recessions. But recent history tells a more nuanced story. … READ MORE >
Market Minute: Investors demanding rising compensation on long-dated government debt
Even as central banks cut policy rates and push rates down at the front end of the curve, investors are demanding a greater premium for holding longer-dated debt. … READ MORE >
Rising inflation, increased spending complicate Fed’s next decision
While nominal gains in spending and income look strong on the topline, adjusting for inflation is necessary—and subsequently implies an economy that is growing just above 1 percent. … READ MORE >
Market Minute: Rising input prices curb appetite for capital expenditure investment
Manufacturers continue to expect higher input prices while holding mixed expectations regarding capital expenditure in the next six months. … READ MORE >
Market Minute: U.S. economy stuck in neutral, key Citi index suggests
Recent developments imply a possible economic turning point in the business cycle—and understanding economic surprise indices is key. … READ MORE >