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 >
RSM Canada Financial Conditions Index
Canada financial conditions update: Stabilization and recovery
Canada’s financial conditions remain underwater for now, signaling slow growth in the first and second quarters of the year after a contraction last year in the third and fourth quarters. As the Bank of Canada said in its December policy statement, higher interest rates are restraining spending. ... READ MORE >
Tighter financial conditions threaten Canada’s growth
After two years of whipsaw change, Canada’s financial and commodity markets have entered a period of relative calm in recent months. Volatility in the stock market has eased, oil prices have declined and prices of raw materials have largely held steady. Even the elevated volatility in the bond ... READ MORE >
Financial conditions and Canada’s real economy
Tightening financial conditions are hurting the Canadian economy to the point where the rising risk of a recession and a housing contraction much larger than anticipated cannot be discounted. Although we expect the Bank of Canada to raise its policy rate to a peak of 4.75% early next year, after ... READ MORE >
RSM Canada Financial Conditions Index shows the return of risk
Risk is being reintroduced into Canada’s financial markets as investment decisions and monetary policy begin to pivot from interest rates at the zero bound. Though the rates are still far lower than in normal times, three-month Treasury bills have moved off recent lows, with the forward market now ... READ MORE >
RSM Canada Financial Conditions Index: An inflation tantrum?
Financial markets around the world are reacting to the rising risk of inflation and the prospect of policy responses by central banks, all of which have led to a modest easing in our RSM Canada Financial Conditions Index. The Bank of Canada has already halted its bond purchase plan, the Reserve ... READ MORE >
RSM Canada Financial Conditions Index remains solid as election approaches.
The Trudeau government goes into Monday’s election with momentum behind the prospects for economic growth and with the financial markets in a steady state. As the Bank of Canada noted in its Sept. 8 assessment, “Financial conditions remain highly accommodative.” But will the unintended consequences of ... READ MORE >
RSM Canada Financial Conditions Index: The global threat of a resurgent virus
Canada’s financial markets continued their cautious optimism in August despite the unexpected 1.1% decline in second-quarter gross domestic product because of declining demand in exports, supply chain constraints and residential investment. That economic surprise may slow those at the Bank of Canada ... READ MORE >
RSM Canada Financial Conditions Index: Accommodation to continue while economy shows signs of revitalization
At its June policy meeting, the Bank of Canada reiterated its intention to maintain an accommodative monetary policy as uncertainty over the pace of the pandemic abates and the economy recovers. As it has for the past 16 months, the bank is keeping its policy rate at near-zero to maintain liquidity ... READ MORE >
RSM Canada Financial Conditions Index: Accommodation to continue while economy recovers
The Bank of Canada on Wednesday reiterated its intention to maintain an accommodative monetary policy stance as the economy continues to recover and as financial conditions remain one standard deviation above neutral. As it has for the past 16 months, the central bank is keeping its policy rate at near ... READ MORE >