The Canadian economy expanded in November by 0.2% on a month-over-month basis, slightly exceeding expectations after staying flat for three months. The goods-producing industries were responsible for most of the expansion, growing by 0.6%, the highest rate since January last year. Meanwhile, the ... READ MORE >
Tu Nguyen
The case for the Bank of Canada to accelerate rate cuts
With restrictive financial conditions, high interest rates and still-elevated inflation, the Canadian economy has come to a standstill and is now at a tipping point. The Bank of Canada’s decisions over the next few months could influence whether the economy arrives at a soft landing or falls into a ... READ MORE >
Bank of Canada holds rates steady at 5% amid weak growth
As expected, the Bank of Canada on Wednesday maintained its policy rate at 5 per cent and continued its restrictive monetary policies. At the same time, though, its public statements signed a more dovish tone. In softening its rhetoric, the central bank noted the slowdown in the global and domestic ... READ MORE >
Canada’s inflation accelerated to 3.4% in December
December’s Consumer Price Index report for Canada is another bump in the road in the path toward price stability. The overall index rose by 3.4% on a year-over-year basis in December, up from 3.1% in November, primarily because of the base effect, or comparisons to a year ago. Prices dropped from ... READ MORE >
Inflation in Canada stayed steady at 3.1%
Canada’s inflation in November failed to make progress, staying steady at 3.1%. But core inflation apart from housing and food continued to trend lower and came in around 3.5%, markedly lower than earlier this year. Food and housing remain primary drivers of inflation. On a year-over-year basis, ... READ MORE >
Bank of Canada holds at 5% as excess demand is stomped out
In an acknowledgment of the economy's surprise contraction in the third quarter, the Bank of Canada on Wednesday shifted its tone on monetary policy from hawkish to neutral as it held its policy rate steady at 5 per cent. A series of gradual rate cuts from the current 5% is in order starting in April ... READ MORE >
Canada’s unemployment rises to 5.8%, adding to case for rate cuts
Canada added 25,000 jobs in November as its unemployment rate climbed to 5.8%, its highest level since January 2022, Statistics Canada reported on Friday. Together with the weak third-quarter gross domestic product report on Thursday, November’s jobs data adds more evidence to the argument for the Bank ... READ MORE >
Canada’s economy contracted more than expected, suggesting a pivot on rates
Canada’s economy contracted more than expected in the third quarter, suggesting that the Bank of Canada might soon pivot to cutting rates, as early as April, to avoid a deeper recession than needed. Canada’s gross domestic product declined by 0.3 per cent in the third quarter and by 1.1 per cent on an ... READ MORE >
As Canada pledges to restrain spending, it confronts a housing crisis
With Canada’s debt and interest payments rising, the federal government pledged this week to exercise restraint in spending. The announcement, which came Tuesday in the government's Fall Economic Statement, comes amid rising pressure for Canada to avoid fueling inflation with more spending, especially ... READ MORE >
Canada sees disinflation as gasoline prices ease
Canada’s consumer price index in October speaks loud and clear: Disinflation is here, and no more rate hikes by the Bank of Canada are needed. Inflation fell to 3.1% on a year-over-year basis, according to Statistics Canada on Tuesday. On a monthly basis, prices fell by 0.1%. The plunge is largely ... READ MORE >