Weary Canadian households, clobbered by nearly two years of rising prices and skyrocketing interest rates, will have to wait a little longer for relief on their borrowing costs. The Bank of Canada left its key overnight lending rate unchanged at five per cent on Wednesday, citing the persistence in underlying inflation and concerns that it might […]
Currently, there’s no evidence that Canada is facing a greater economic shock ahead compared to the United States, according to CIBC Capital Markets. “Looking at outright recessions, there’s no clear pattern for either country to be hit harder, despite Canada long having been more resource-oriented, and, in recent decades, having a household sector that carries […]
There’s little question that Canada is navigating a “weird” economy right now, says Ken Peacock. The Business Council of BC’s (BCBC) chief economist points out that inflation is sky-high (seven per cent in August) at the same time labour markets are facing a severe crunch, with Statistics Canada reporting more than one million job vacancies […]
In Canada, economic pressures are closing in When you’re at the top of the hill the only way to go is down. Canada’s economic growth has fired on all cylinders following pandemic shutdowns. But a historic labour squeeze, soaring food and energy prices and rising interest rates are now closing in. Those pressures will likely […]
Canada’s risk of a recession is growing, but a hard landing isn’t a done deal, according to The Conference Board of Canada’s latest forecast. Though the economy is slowing down, it is still likely to eke out growth over the next 12 months, avoiding a recession, the Conference Board said in an analysis published this week. […]
A BMO Capital Markets senior economist says the Bank of Canada’s recent move to increase its key interest rate is setting up the housing market for an even deeper correction next year. Robert Kavcic says governor Tiff Macklem’s surprise one-percentage-point rate hike last week was like taking a hammer to the housing market. In a note to investors, Kavcic says the increase which prompted the […]
The unwelcome landmarks continue to fall. Last week, US inflation rose above 9% for the first time in four decades, and the value of a euro dropped below the value of a dollar for the first time in two. Round numbers shouldn’t matter, and both continued trends that had been around for a while. But […]
The EUR/USD has been steadily trading lower across the year. The pair kicked off 2022 at 1.1370, then rose to 1.1495 in early February, before falling to a low of 1.0350 on 13 May – levels last seen in January 2017. From here, EUR/USD attempted to rebound, rising to 1.0650 at the beginning of June, before […]
The USD/CAD slides for the second straight day, erasing last Thursday’s gains, and is back below last week’s low at 1.2936, due in part to a softer US dollar. The DXY has retraced from 108.000, almost 1%, amidst an upbeat market mood, cheered on speculation that the Fed would not tighten as aggressively as previously expected. Therefore, […]