Bank of Canada Cuts Rates Another Quarter Point Today, the Bank of Canada cut the overnight policy rate by another 25 basis points to 4.25%. This is the third consecutive decrease since June. The Bank’s decision reflects two main developments. First, headline and core inflation have continued to ease as expected. Second, as inflation gets closer to the target, the […]
Q2 Canadian Growth, Boosted By Record Population Gains, Slows In June And July Canada’s economy grew a bit more than expected in the second quarter, but falling per-capita gross domestic product and softening household consumption assure the Bank of Canada that it will cut rates for a third consecutive meeting next week. Canadian GDP rose 2.1% annually in the second quarter, […]
More Good News On The Canadian Inflation Front Inflation in Canada decelerated once again in July to its slowest pace in three years, assuring the central bank will cut rates for the third consecutive meeting on September 4. The US is also widely expected to begin easing monetary policy at its September confab. The annual inflation rate in Canada fell […]
Canadian Housing Market Paused In July Despite the continued decline in interest rates, the Canadian housing market saw summer doldrums last month. The Canadian Real Estate Association (CREA) announced today that national home sales fell 0.7% monthly while rising 4.8% from year-ago levels. A significant uptick in sales activity is likely this fall, reflecting both Bank of Canada easing and […]
Weaker-Than-Expected July Jobs Report Keeps BoC Rate Cuts In-Play Canadian employment data, released today by Statistics Canada, showed a continued slowdown, which historically would have been a harbinger of recession. This cycle, immigration has augmented the growth of the labour force and consumer spending, forestalling a significant economic downturn. Employment declined again in July, down 2.8K. The employment rate—the proportion of […]