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 […]
Tag Archives: Bank of Canada
28
May
May
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, […]
07
May
May
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 […]
23
Apr
Apr
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 […]
16
Apr
Apr
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. […]
12
Apr
Apr
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 […]
26
Mar
Mar
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 […]
05
Mar
Mar
Canada’s inflation rate unexpectedly slipped below 3% in January, into the Bank of Canada’s target range of 2% to 3%. There’s still work to do if the central bank wants to get inflation down to 2%, but to do so, it may need to keep interest rates higher for longer. That would be bad news […]
28
Feb
Feb
The Bank of Canada delivered a pleasant surprise when it announced that the country’s inflation rate slowed more than expected in January to 2.9%. That’s down sharply from 3.4% in December and is lower than the 3.3% reading economists were looking for and the 3.2% mark forecast by the Bank of Canada. Of particular note, […]
07
Feb
Feb
Between January 1 and October 31, 2023, the TSX lost 3.3% of its value. But from November 1, 2023 to January 31, 2024, the TSX has rallied an impressive 12.2%. And the long-term outlook for the TSX remains bullish. But investors may be getting ahead of themselves. Why Is the TSX Doing So Well? On […]
