Bank of Canada holds rates steady for second consecutive meeting as Q1 GDP surprised on the high side and tariff-related inflation remains a risk.

June 4, 2025

Bank of Canada Holds Rates Steady for the Second Consecutive Meeting–But Two More Rate Cuts Are Likely This Year As expected, the Bank of Canada held its benchmark interest rate unchanged at 2.75% at today’s meeting, the second consecutive rate hold since the Bank cut overnight rates seven times in the past year. The governing council noted that the unpredictability of […]

Q1 Canadian GDP Comes In Stronger Than Expected Owing to Tariffs

May 30, 2025

Q1 GDP Growth Was Bolstered by Tariff Reaction As Residential Construction and Resale Activity Weakened Further Statistics Canada released Q1 GDP data showing a stronger-than-expected 2.2% seasonally adjusted annual rate, a tick above the pace of the quarter before. Exports drove growth as companies in the United States rushed to stockpile Canadian products before U.S. President Donald Trump imposed tariffs. Growth […]

Canadian headline inflation fell to 1.7% y/y in April owing to end of carbon tax and falling energy prices.

May 20, 2025

Today’s Inflation Report Poses a Conundrum for the Bank of Canada The headline inflation report for April showed a marked slowdown in the Consumer Price Index (CPI), which rose a mere 1.7% year over year (y/y), down sharply from the 2.3% rise in March. The slowdown in April was driven by lower energy prices, which fell 12.7% following a 0.3% decline in March. Excluding […]

Canadian National Home Sales Unchanged In April As New Listings and Home Prices Fall

May 15, 2025

Global Tariff Uncertainty Sidelines Buyers Canadian existing home sales were unchanged last month as tariff concerns again mothballed home-buying intentions, mainly in the GTA and GVA where sales have declined for months. Consumer confidence has fallen to rock-bottom levels as many fear the prospect of job losses and higher prices.  The number of sales recorded over Canadian MLS® Systems was […]
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