Canada Economics Update Faster profit growth won't spur investment The faster growth in corporate profits in the third quarter is an encouraging sign for economic growth, but the details were less impressive. In addition, with oil prices still relatively low despite... 24th November 2017 · 1 min read
Canada Economics Update Bank of Canada on hold for rest of this year The Bank of Canada’s decision to hold interest rates at 1.00% and its less hawkish policy statement indicate it will take a cautious approach, supporting our view that there will be no further rate... 25th October 2017 · 1 min read
Canada Economics Update Federal fiscal windfall unlikely to last Federal Finance Minister Bill Morneau didn’t deliver any major stimulus in today’s fiscal update, not that it was needed given the economy’s strong performance this year. But the pace of economic... 24th October 2017 · 1 min read
Canada Economics Update Tougher mortgage regulation to hit housing hard The final decision to forge ahead with proposals to tighten mortgage rules further will only make matters worse for the already faltering housing market. This will have a far greater impact on house... 17th October 2017 · 1 min read
Canada Economics Update Positive business sentiment points to interest rate hike The latest Business Outlook Survey shows that, despite concerns about a slowdown in housing and trade policy uncertainty, businesses expect above-potential economic growth ahead. This positive... 16th October 2017 · 1 min read
Canada Economics Update Government should tread carefully on tax policy The current proposals to raise taxes on small business owners will raise little additional revenue for the Federal government and, at a time when the US is considering slashing business tax rates... 2nd October 2017 · 1 min read
Canada Economics Update Bank of Canada still hawkish on rate outlook In his speech today, Bank of Canada Governor Stephen Poloz showed that he remains confident in the economy, suggesting that another interest rate hike is coming this year. That said, we still expect... 27th September 2017 · 1 min read
Canada Economics Update Canadian dollar likely to tumble next year The Bank of Canada’s unexpectedly aggressive monetary tightening this year, which stands in stark contrast to the Fed’s over-cautious approach, largely explains the surge in the Canadian dollar this... 14th September 2017 · 1 min read
Canada Economics Update Bank of Canada taking a big gamble on rate hikes The Bank of Canada’s decision to raise interest rates for a second consecutive time is a clear sign that policymakers are supremely confident in the economy. Considering the strong pace of recent GDP... 6th September 2017 · 1 min read
Canada Economics Update Bank of Canada gambles on rate hike The Bank of Canada’s decision to begin raising interest rates is a gamble that might have to be reversed before long. With the housing bubble already showing signs of bursting and household debt at... 12th July 2017 · 1 min read
Canada Economics Update Business confidence more positive despite housing slowdown The latest Business Outlook Survey highlights that, despite the potential disaster unfolding in the housing market, businesses expect faster GDP growth this year, which obviously explains the Bank of... 30th June 2017 · 1 min read
Canada Economics Update Rally in Canadian dollar may have run its course Despite hawkish comments from the Bank of Canada, we don’t expect the rally in the Canadian dollar to go much further. Given signs of a correction in the housing market, we doubt that the BoC will... 20th June 2017 · 1 min read
Canada Economics Update Bank of Canada still neutral on rate outlook The Bank of Canada’s decision today to keep its policy interest rate at 0.50% and to remain neutral on the outlook for rates shows that, despite strong economic growth and employment gains... 24th May 2017 · 1 min read
Canada Economics Update Home Capital Group won’t trigger housing bust The financial difficulties at alternative mortgage lender Home Capital Group (HCG) don’t necessarily mark the end of the housing boom, since it is too small to matter. But with signs that the housing... 2nd May 2017 · 1 min read
Canada Economics Update Bank of Canada in no mood to raise interest rates The Bank of Canada’s decision today to keep its policy interest rate at 0.50% and to stay neutral on the outlook for rates is understandable given how uneven recent economic growth has been. Until... 12th April 2017 · 1 min read
Canada Economics Update Business confidence slips, but still relatively positive The latest Business Outlook Survey shows that, despite concerns about a potential slowdown in housing, businesses still expect faster economic growth this year. Nevertheless, pressures on production... 3rd April 2017 · 1 min read