Tag Archives: Bank of Canada

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

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?

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

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 […]

Weak Canadian Economy Could Force Bank of Canada to Reduce Interest Rates in April

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 […]

Canadian Inflation Surprises to the Downside

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, […]

TSX On a Tear, Up 12% Since November. But Is It Justified?

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 […]

Bank of Canada Done With Rate Hikes, But When Is First Interest Rate Cut Coming?

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 […]

Canadian Inflation Rises 3.4% in December—How Will the Bank of Canada Respond?

Statistics Canada announced that the country’s inflation rate in December ticked up to 3.4%, which is up from 3.1% in November. The increase was fueled due to gas prices and higher prices at grocery stores. Grocery prices held pat at 4.7% while prices at restaurants have risen by 5.6% over the last year. Housing prices […]

U.S. Inflation Unexpectedly Heats Up in December, But Rate Cuts Still Expected

The December Consumer Price Index, or CPI, which measures U.S. inflation, rose 0.3% month over month. to 3.4%. This is up from a November reading of 3.1% and higher than the 0.2% month-over-month increase and 3.2% annual reading economist’s were expecting. Housing costs were responsible for more than half of the increase in prices followed […]

Canada’s Inflation Slows to 3.1% in October—Will This Shut the Door on Additional Rate Hikes?

Statistics Canada announced that Canada’s inflation rate slowed to 3.1% in October, that’s down significantly from the 3.8% reading in September. There is a caveat to that drop in inflation, however. The big deceleration was mainly a result of lower gas prices, which were down 6.4% over September and down 7.8% from where gas prices […]