Tag Archives: Bank of Canada

Was the Bank of Canada Right to Hold the Key Interest Rate at 2.75%?

Bank of Canada Right to Hold the Key Interest Rate at 2.75%

On April 16 the Bank of Canada announced it was holding its key policy rate, which directly impacts interest rates, at 2.75%. This was the first pause in interest rates after it announced seven consecutive interest-rate cuts. Financial markets and analysts were split on whether the Bank of Canada should deliver another quarter-point interest-rate cut […]

Bank of Canada Could Make Deeper, Faster Cuts to Interest Rates Amid U.S. Trade War

Bank of Canada interest rate cuts

There are more than enough reasons to think the Bank of Canada will be forced to lower its key lending rate, which impacts interest rates, more deeply and quickly than previously thought. The biggest threat to the Canadian economy right now is U.S. President Trump’s barrage of tariffs, which has sent global stock markets reeling. […]

Federal Reserve Holds Interest Rates But Additional Cuts Expected in 2025

Fed Holds Interest Rates & Blames Tariffs

At the March Federal Open Market Committee (FOMC) meeting, the Federal Reserve kept its key overnight lending rate, which directly impacts interest rates, in a range of 4.25% to 4.5% for the second consecutive meeting. This came after the Fed announced three consecutive interest rate cuts that began in September 2024.  The markets priced in […]

Bank of Canada Cuts Interest Rate to 2.75% Amidst a Trade War with the U.S.

Bank of Canada Cuts Interest Rate to 2.75%

On March 12, the Bank of Canada cut its key lending rate, which impacts interest rates by 25 basis points from 3% to 2.75% This marks the seventh straight interest rate cut by the central bank since June 2024. Since last summer, the Bank of Canada has reduced its key lending rate by 225 basis […]

Stock Market Turmoil Gives Insight Into Tariff Winners and Losers

Tariff Winners and Losers

How Are Stock Markets Doing? Canadian stock market volatility has soared over the last number of weeks amid concerns about President Trump’s on-again off-again tariffs. President Trump threatened 25% tariffs on Canadian goods in February but put them on hold until early March, then changed his mind and announced a reprieve until April 2. Since […]

Canada’s Inflation Increases to 1.9% in January, Increasing Odds of a Rate Cut

Canada’s Inflation Increases to 1.9% in January

Canada’s inflation rate went in the wrong direction in January, with the Consumer Price Index ticking up to 1.9%. In December, Canada’s inflation rate was 1.8%. The increase was a little unexpected in light of the national GST holiday that ran from December 14, 2024 to February 15, 2025. It could have been a lot […]

Trump’s Tariff Talk Sparks Economic Uncertainties

25% Tariffs on Canadian Steel and Aluminum

U.S. President Trump has paused implementing crushing, broad-based 25% tariffs on Canada and Mexico until early March, but that doesn’t mean he is taking a break from implementing any tariffs. On February 10, President Trump announced that he would be implementing a 25% tariff on all steel and aluminum entering the U.S. This is on […]

Will the Bank of Canada Make an Emergency Rate Cut Amidst Trump’s Tariffs?

Bank of Canada and economic impact of Trump’s tariffs on interest rates.

In late January, the Bank of Canada cut its key overnight lending rate, which impacts interest rates, by 25 basis points to 3%. This is the fifth straight cut since June 2024 when interest rates stood at 5%. The modest 0.25% interest rate cut was widely expected with Canada’s annual inflation rate falling to 1.8% […]

Strong Canadian Economic Data Increases Odds of Interest Rate Pause

Bank of Canada Interest Rate

The Bank of Canada cut its key lending rate, which sets interest rates, five times in 2024, from 5% in May to 3.25% in December. Despite the big drop in interest rates, policymakers had forecast that the central bank could be even more aggressive with its interest rate cuts in 2025. That now seems in […]

Canada’s Inflation Rate Unexpectedly Jumps to 2.0%

Canada’s Inflation Rate

Canada’s inflation rate unexpectedly jumped to 2.0% in October from 1.6% in September. Analysts were expecting Canada’s inflation rate to climb in October to 1.9%. Every month, Canadian inflation inched up 0.4%, versus expectations for a 0.3% gain. It was also the first time since May that Canadian inflation increased. Statistics Canada said the higher-than-expected […]