13 Jul

BANK OF CANADA RATE HIKES RATE BY 25 bps – HIGHEST IN 22 YEARS

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Posted by: Kim Stenberg

Interest Rates Will Stay Higher for Longer The Bank of Canada increased the overnight policy rate by 25 basis points this morning to 5.0%, its highest level since March 2001. Never before has a policy action been so widely expected. Still, the Bank’s detailed outlook in the July Monetary Policy Report (MPR) suggests stronger growth […]

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10 Jul

It’s a Close Call Which Way the Bank of Canada Will Go

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Posted by: Kim Stenberg

Employment growth last month came in at a whopping 60,000 jobs, tripling expectations, and most of those net new jobs were for full-time workers. As our population grows, more people are available to fill job vacancies. Employment rose in wholesale and retail trade (+33,000), manufacturing (+27,000), health care and social assistance (+21,000) and transportation and […]

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27 Jun

May Inflation Numbers Were Good, BUT Will They Satisfy the Bank of Canada?

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Posted by: Kim Stenberg

The May inflation data, released this morning by Statistics Canada, bore no surprises. The year-over-year (y/y) inflation measured by the Consumer Price Index (CPI) at 3.4% was just as expected–down a full percentage point from the April reading. This is the smallest increase since June 2021. Economists hit this one on the head because we knew dropping the April […]

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17 May

Canadian Housing Activity Strengthens Sharply in April

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Posted by: Kim Stenberg

The Canadian Real Estate Association says home sales in April surged 11.3% month-over-month. The Spring rebound was on the heels of smaller back-to-back gains in the prior two months. Now that the Bank of Canada paused interest rate hikes and home prices in most regions have softened, homebuyers are scrambling for the minimal available housing […]

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16 May

Canadian CPI Inflation Ticked Up for the First Time in Nearly a Year

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Posted by: Kim Stenberg

There’s been an unexpected hiccup in the Bank of Canada’s ongoing battle against inflation. Year-over-year, price pressures escalated to 4.4% in April, an uptick from the previous month’s 4.3% and significantly exceeding the average economist’s prediction of 4.1%. This marks the first rise in overall inflation from the last June. Ironically, higher interest rates are intended to […]

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24 Apr

OSFI Set to Tighten Banking Regulation – Weakening Housing Markets Pose a Risk for the Canadian Economy

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Posted by: Kim Stenberg

On April 18, Canada’s national banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), released its second Annual Risk Outlook (ARO), outlining what it believes are the most significant headwinds facing the Canadian financial system – and what the regulator plans on doing about it. According to the report, the severe downturn in […]

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12 Apr

BANK OF CANADA ANNOUNCEMENT: Holds Policy Rate at 4.5%

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Posted by: Kim Stenberg

The Bank of Canada left the overnight policy rate at 4.5%, as expected, stating their view that inflation will hit 3% by mid-year and reach the 2% target by next year. They admit, however, that demand continues to exceed supply, wage gains are too high, and labour markets are still very tight. The Bank is […]

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