Bank of Canada (BoC) holds its rate today. Theme is clear: “uncertainty remains high”. But this time, there was consensus to hold — more data needed. We’re entering less forward-guided territory. Governing Council now split. Some see a need for rate cuts if the economy weakens. Recent data: housing slowed, government spending down, labour market […]

Bank of Canada (BoC) holds rates steady today. Acknowledges it cannot resolve trade uncertainty or mitigate effects of a trade war. Focus remains on maintaining price stability. >Tone: Dominated by rising tariffs, uncertainty, and extreme market volatility. >Canada: Economy slowing; employment down; wage growth softening. >US: Signs of slowing growth; inflation expectations climbing. >BoC outlook: […]

As expected, the Bank of Canada (BoC) drops its rate by another 0.25% today—but it admits it can’t fix the impact of the trade war. > Tone of the announcement: In their own words: “more-than-usual uncertainty.” > Consumer confidence is plunging > business slowdown, investment cancellations.An > Housing: Past rate cuts boosted activity, but shelter […]

Bank of Canada (BoC) drops their rate by another 0.25%. It also announced the end of quantitative tightening and will gradually restart asset purchases.  This is telling. It’s a quiet signal that they’re wary of economic weakness, trade risks, and drifting further from the US Fed. The Canadian dollar has depreciated materially against the US […]

Bank of Canada (BoC) drops their rate by another 0.5%. Canadian dollar has depreciated in the face of broad-based strength in the US dollar. The recent unemployment rate rose, as employment continued to grow more slowly than the labour force. Wage growth showed some signs of easing, but remains elevated relative to productivity. The upward […]

Bank of Canada (BoC) drops their rate by 0.5%, ‘to support economic growth’.    Consumption has continued to grow but is declining on a per person basis. The labour market remains soft. Population growth has continued to expand the labour force while hiring has been modest. Wage growth remains elevated relative to productivity growth. Overall, the […]

As expected, Bank of Canada (BoC) drops their rate by 0.25%, for the third time this year. The labour market continues to slow. Wage growth, however, remains elevated relative to productivity. High shelter price inflation is still the biggest contributor to total inflation but is starting to slow. Inflation also remains elevated in some other […]

Bank of Canada (BoC) drops their rate by 0.25%, for the second time in a row. Household spending has been weak. There are signs of slack in the labour market. The unemployment rate has risen, job seekers taking longer to find work. Wage growth is showing some signs of moderating, but remains elevated. Residential investment […]

Bank of Canada finally drops their rate by 0.25%. Inflation in most advanced economies continues to ease. The Bank’s preferred measures of core inflation suggest continued downward momentum. However, they state recent data suggest the economy is still operating in excess supply. Shelter price inflation remains high and housing activity increased. Wage pressures remain but […]

Bank of Canada maintains policy rate.  Inflation in most advanced economies easing gradually. US economy stronger than anticipated. Global oil prices have moved up.  In Canada,  labour market conditions continue to ease, unemployment rate has risen gradually, wage pressures are moderating.  However, shelter price inflation is still very elevated, driven by growth in rent and […]