Tag Archives: Bank of Canada

Canada’s Inflation Rate Unexpectedly Falls to 3.8% in September

Canada’s inflation rate unexpectedly dipped in September to 3.8%. That’s down from 4.0% in August. The 3.8% figure is below the 4.0% figure economists were expecting inflation to come in at. The cooling of Canada’s inflation was pretty broad based too, with prices falling for some travel-related services, durable goods, and groceries. The latter of […]

Additional Interest Rate Hikes Still on the Table But Canada Is Not Headed for a Recession

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. […]

Where Should Investors Turn if Canada Enters a Recession?

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 […]

TSX Falls After Canada’s Inflation Jumps to 4.0% In August

Canada’s inflation rate unexpectedly jumped in August for the second month in a row. This increases the odds that the Bank of Canada could increase interest rates at least once more this year. After pausing its overnight lending rate earlier in September, investors were optimistic that it would hold interest rates at 5%. Will The […]

Bank of Canada Holds Interest Rate at 5% as Economy and Corporate Earnings Slow

On September 6, the Bank of Canada announced it was holdings its key interest rate at 5%. In a prepared statement the country’s central bank said the cooling job market and slowing economic growth were two reasons why it opted to pause its benchmark lending rate. The Bank of Canada said, however, that should inflationary […]

Does Weaker Canadian Economic Data Point to a Pause in Interest Rate Hikes?

The Bank of Canada has been aggressively raising interest rates to cool the economy and stave off a recession. Since March 2022, it has increased its key lending rate 10 times, from 0.25% in March 2022 to a 22-year high of 5.00% in July 2022. It looks like the interest rate hikes are working, and […]

Inflation Is in the Bank of Canada’s Target Range at 2.8%

Bank of Canada Interest rates

Canada’s inflation rate has been declining at a steady pace over the last year, from 8.1% in June 2022 to 2.8% in June 2023. That’s the lowest level since early 2021. And at 2.8%, Canada’s inflation rate has fallen within the Bank of Canada’s target range of 1% to 3% percent. Despite the big drop […]

Interest Rates Are at the Highest Level: Are More Rate Hikes to Come?

Interest Rates Are at the Highest Level

Canada’s inflation rate peaked at 8.1% in June 2022. A year later and its at 3.4%. That’s a big drop, and getting close to the long-term average of 3.15%, but it’s not low enough for the Bank of Canada, which just announced it raised its key interest rate by 25 basis points to 5.0%. To […]

Strong Retail Sales Points to July Interest Rate Hike by Bank of Canada

Interest Rate Hike by Bank of Canada

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 […]

Bank of Canada Unexpectedly Raises Interest Rates While the Federal Reserve Pauses It’s Rate Hikes

Bank of Canada Raises It’s Interest Rates While Federal Reserve Hits Pause

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 […]