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 […]
Tag Archives: recession
01
Feb
Feb
The Bank of Canada held its key lending interest rate at 5% for the fourth consecutive meeting. Of particular note, the central bank said, for the first time, that it won’t raise interest rates again if the economy moves in line with forecasts. “If the economy evolves broadly in line with the projection we published […]
17
Oct
Oct
Bank of Canada Governor Tiff Macklem said that the central bank’s aggressive interest rate policy is working at bringing down inflation. After raising its key lending rate 10 times since the start of 2022, from 0.25% to 5.0%, Canada’s inflation rate has retraced from a 39-year high of 8.1% in June 2022 to 4.0% today. […]
10
Oct
Oct
With many economists and analysts still predicting Canada will enter a recession in 2024, investors may be wondering what they should do? Capitulate, wait on the sidelines, or get involved? What Are the Odds of a Soft-Landing Recession? First things first, the long-promised recession has not yet materialized but most believe it will. The Bank […]
03
Oct
Oct
Economists have been predicting a recession in Canada and the U.S. for months now. Despite decades-high inflation and an unprecedented interest rate hike policy, a recession has yet to materialize. If anything, the Canadian economy has proven to been more resilient than many expected. But cracks are beginning to appear. Economic growth is slowing, jobs […]
19
May
May
Statistics Canada surprised the markets when it announced that the country’s inflation rate rose unexpectedly in April to 4.4%. After cooling in March to 4.3%, economists were expecting the inflation rate to continue decelerating to 4.1%. This represents the first increasing in inflation since June 2022, when Canada’s inflation rate hit a more than 40-year […]
17
May
May
The Canadian dollar is taking a hit against the U.S. dollar, after positing its biggest decline since March. The Canadian dollar, which is trading at $1.33 compared to the U.S. greenback is down 0.8% over the last few trading days and has lost 3.7% of its value over the last year. The Canadian dollar is […]
09
May
May
The U.S. Federal Reserve continued its inflation fighting ways on May 3 after it lifted its key lending rate by 25 basis points from a target range of 5.00% to 5.25%. This represents the 10th straight interest rate hike and the highest level since the autumn of 2007. Since it started raising interest rates in […]
02
May
May
First quarter earnings season has begun and the outlook for Canadian stocks is muted, with analysts lowering their first quarter earnings estimates more than average for S&P/TSX Composite companies. First quarter estimated earnings, on a per share basis, decreased by 8.9% from December 31 to March 31. This decline is far larger than the five-year […]
25
Apr
Apr
Statistics Canada announced that Canada’s inflation rate fell to 4.3% in March from 5.2% in February—the slowest pace since August 2021. Any deceleration in inflation is welcome, but the 4.3% rate is still more than double the Bank of Canada’s two percent target. On a month-over-month basis, the consumer price index (CPI) was up 0.5% […]
