Economic Insights.

Dr. Cooper is Dominion Lending Centre's Chief Economist who helps Canadians understand the issues surrounding their most important financial decision – buying a home.

Canadian Weak Job Gains in October Keeps Jumbo Rate Cut In Play

November 8, 2024

Weaker-Than-Expected October Jobs Report Keeps Jumbo Rate Cut In-Play in December Statistics Canada released October employment data today. The data showed a marked slowdown in job growth, underscoring ongoing labour-market softness that triggered a jumbo rate cut last month. Statistics Canada said the country added 14,500 positions in October, which missed the median expectation of a 27,200 rise in a Bloomberg survey of economists. […]

Jumbo Rate Cut by the Bank of Canada

October 23, 2024

Bank of Canada Cuts Policy Rate By 50 BPS After three consecutive 25 bp rate cuts, the BoC slashed the overnight rate by 50 bps this morning, bringing the policy rate down to 3.75%. The market had priced in 90% odds of a 50 bp move, where consensus coalesced. The combined slower-than-expected GDP growth and back-to-back weak inflation reports solidified the calls for […]

Home sales have trended up since rate cuts began, but new listings have risen faster

October 15, 2024

Canadian Housing Market Stuck In A Holding Pattern Following the Bank of Canada’s third interest rate cut of the year, national home sales increased slightly in September compared to August. This follows a similar pattern of gains recorded in the months following the first two rate cuts. Home sales recorded over Canadian MLS® Systems climbed 1.9% month-over-month in September 2024, […]

Canadian inflation fell to 1.6% y/y in September, the smallest yearly increase since 2021.

October 15, 2024

More Good News On The Canadian Inflation Front The Consumer Price Index (CPI) rose 1.6% year over year in September, the slowest pace since February 2021 and down from a 2.0% gain in August 2024. The main contributor to headline deceleration was lower year-over-year gasoline prices in September (-10.7%) compared with August (-5.1%). The all-items CPI, excluding gasoline, rose 2.2% in September, […]

Stronger than expected Canadian jobs report for September reduces the chances of a 50-bp rate cut on October 23

October 15, 2024

Stronger-Than-Expected September Jobs Report Reduces Prospect Of Larger Rate Cuts Statistics Canada released September employment data today, showing a marked uptick in job growth and the first decline in the unemployment rate this year. Employment rose by 46,700 in September, following four months of little change. Despite the employment gain, the employment rate—the proportion of the population aged 15 and older who is […]