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
Canada Economics Update Federal budget avoids policy change on uncertain outlook The 2017 Federal budget delivered today, which was largely a wait-and-see budget, is understandable given the highly uncertain outlook on US trade and fiscal policy. Furthermore, the government is... 22nd March 2017 · 1 min read
Canada Economics Update Bank of Canada still taking wait and see approach Although core inflation is dangerously low and wage growth anaemic, the Bank of Canada’s decision to hold its policy interest rate at 0.50% can be justified on the recent improvement in the activity... 1st March 2017 · 1 min read
Canada Economics Update Bank of Canada in wait-and-see mode Given the considerable uncertainty surrounding exactly what policies the incoming Trump administration will pursue south of the border, we have every sympathy with the Bank of Canada’s decision to... 18th January 2017 · 1 min read
Canada Economics Update Key forecast calls for 2017 The underlying momentum in the economy remains sluggish and circumstances aren’t likely to improve next year, mainly because of a worsening downturn in housing investment. We expect GDP growth to be... 20th December 2016 · 1 min read
Canada Economics Update Bank of Canada taking a wait and see approach After seriously considering an interest rate cut back in October, the Bank of Canada gave no strong indication in today’s policy statement that it was considering a rate cut in the near term. There... 7th December 2016 · 1 min read
Canada Economics Update Trump victory creates more business uncertainty The reaction in financial markets to Donald Trump’s surprising US election victory has been limited so far, thanks in large part to the surprisingly conciliatory tone of his acceptance speech this... 9th November 2016 · 1 min read
Canada Economics Update Federal fiscal update doesn't alter dismal growth outlook Finance Minister Bill Morneau focused entirely on longer-term infrastructure spending in today’s fiscal update, offering no new short-term stimulus measures to bolster the struggling economy. If, as... 1st November 2016 · 1 min read
Canada Economics Update Canada caught in the global backlash against free trade The potential collapse of Canada’s Comprehensive Economic Trade Agreement (CETA) with the European Union would not be a big economic blow, since estimates suggested that even the long-term boost to... 27th October 2016 · 1 min read
