Tag Archives: Bank of Canada

Why the Bank of Canada Should Announce a July Rate Cut

Why the Bank of Canada Should Announce a July Rate Cut

In early June, the Bank of Canada cut interest rates for the first time since March 2020. The central bank cut its key overnight lending rate by 25 basis points to 4.75%. The big question is when the next interest rate cut will come. Will the Bank of Canada Cut Rates Again in July? At […]

The Bank of Canada Is Still Concerned About the Health of the Canadian Economy

Canadian Economy

After a year in which the Canadian economy experienced virtually no growth, the economy performed better than expected in the first quarter of 2024, with real gross domestic product (GDP) advancing 1.7% on an annual basis. That’s slower than the median forecast of 2.2% and below the Bank of Canada’s forecast of 2.8%, but it’s […]

U.S. Federal Reserve Holds Interest Rates, Expects Just One Cut in 2024

U.S. Federal Reserve Holds Interest Rates

The U.S. Federal Reserve said on June 12 that it was holding its key interest rate unchanged at approximately 5.5%, a level it has held since July 2023. The Fed has raised interest rates 11 times since March 2020 to fight inflation. Inflation has fallen from a high of 9% in June 2022 to 3.4% […]

The Bank of Canada Cuts Interest Rates for the First Time in 4 Years

Bank of Canada Cuts Interest Rates

The Bank of Canada cut its key lending rate by 25 basis points to 4.75%, the first rate cut since March 2020. The central bank said that further interest rate cuts were on the table should inflation continue to ease. The Bank of Canada was the first central bank among G7 nations to announce a […]

Canada’s Inflation Cools, Pointing to June Interest Rate Cut

Canada’s Inflation Cools

After dealing with decades-high inflation, Canadian consumers are beginning to see the effects of the Bank of Canada’s aggressive interest rate hike policy. Statistics Canada announced that the annual inflation rate cooled to 2.7% in April, down from 2.9% in March. The lower inflation rate comes on the heels of slower growth in food prices, […]

Canadian GDP Loses Steam, Slows to Just 0.2%

Canadian GDP Loses Steam

Persistently high interest rates are taking a big bite out of the Canadian economy. In February, Canada’s gross domestic product (GDP) grew just 0.2% on a month-over-month basis. That’s lower than the 0.3% economists were expecting and well below Statistics Canada’s own advanced estimate of 0.4%. On an annual basis, Canadian GDP grew 0.8%, well […]

Canadian Inflation Inches up to 2.9% in March, Raises Bets of June Interest Rate Cut

Canadian Inflation Inches up to 2.9

According to Statistics Canada, the country’s inflation rate inched up to 2.9% in March, juiced by higher gasoline prices. That’s up from 2.8% in February but still close to its 2% target. The March results were also in line with what Bay Street analysts were expecting. While the consumer price index (CPI) rose slightly, measures […]

Canadian Dollar Tumbles to Five-Month Low Against U.S. Dollar

Canadian Dollar Tumbles

Over the last two years, the Bank of Canada and the U.S. Federal Reserve have taken drastic steps to cool inflation. While unprecedented interest rate hikes have taken a toll on the Canadian economy, the U.S. economy is booming. We can see this playing out with the divergence between the Canadian dollar and the U.S. […]

Is the Canadian Economy Going to Rebound in the Back Half of 2024?

Canadian Economy Skirts Recession

It looks like the Bank of Canada will get what it wanted, a soft economic landing, in which growth has slowed considerably but avoided a recession. In less than two years, the Bank of Canada raised interest rates 10 times, from near zero to 5%. In June 2022, Canadian inflation hit its highest level in […]

Canadian Inflation Surprises to the Downside Again in February

Canadian Inflation

Canada’s inflation rate continues to surprise to the downside. After unexpectedly cooling to 2.9% in January, economists expected the headline inflation rate to rise to 3.1% in February. That didn’t happen. Instead, Canada’s inflation rate cooled to 2.8%. Mortgage and rent interest costs were the biggest driver of the inflation rate. After a 4% decline […]