The Bank of Canada has raised interest rates nine times since the start of 2022, from 0.25% to the current rate of 4.75%. The central bank has taken an aggressive rate hike policy in an effort to tame stubbornly high inflation. Yet, despite higher interest rates, which is designed to slow consumer consumption, Canadians continue […]
Category Archives: Blog
20
Jun
Jun
Depending on who you talk to, stocks are either going way up or way down. Right now, the trend is on the side of the bulls. On June 15, the S&P 500 hit a fresh 52-week high of 411.95, as investors reacted to the Federal Reserve pausing its rate hike. The S&P 500 is officially […]
13
Jun
Jun
The Bank of Canada surprised some when it resumed its monetary tightening policy, increasing its benchmark interest rate by 25 basis points to 4.75%; the highest level since May 2001. This is also the first time that the Bank of Canada has raised its key lending rate since January. At the start of the year […]
06
Jun
Jun
The Toronto Stock Exchange, Canada’s main stock index, is trading at its lowest level since March, as crude oil prices face headwinds and economic data out of Canada and the U.S. could force the Bank of Canada and Federal Reserve to raise interest rates even higher to cool stubbornly high inflation. The Toronto Stock Exchange’s […]
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% […]
18
Apr
Apr
Did The Bank of Canada Raise Interest Rates? Once every quarter the Bank of Canada updates its policy and provides an economic outlook. Historically, most Canadian’s don’t pay a lot of attention to these announcements. But ever since inflation soared to 40-year highs last summer, investors and Canadians alike have been paying close attention to […]
