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
Canada Economics Update Bank of Canada remains on the side lines The Bank of Canada gave no indication in today’s policy statement that it was considering an interest rate cut, even though it lowered its projections for GDP growth and now doesn’t expect the economy... 19th October 2016 · 1 min read
Canada Economics Update Business outlook improves, but still relatively weak The Bank of Canada’s Autumn Business Outlook Survey shows that the drag from the collapse in crude oil prices last year is finally fading. However, there are still few signs that the recovery will be... 7th October 2016 · 1 min read
Canada Economics Update Bank of Canada opens door to rate cut The Bank of Canada issued a relatively dovish statement today, warning that “risks to the profile for inflation have tilted somewhat to the downside since July”. 7th September 2016 · 1 min read
Canada Economics Update Bank of Canada cuts GDP growth forecast The Bank of Canada shocked no-one with its decision to leave its key policy rate unchanged at 0.50% today, but we still anticipate that it will eventually be forced to cut rates again, probably in the... 13th July 2016 · 1 min read
Canada Economics Update Bank of Canada less optimistic on economy Despite a serious downgrade to its views on second quarter economic activity, the Bank of Canada opted to hold interest rates at 0.50% today and to remain neutral on the rate outlook, clinging to its... 25th May 2016 · 1 min read
Canada Economics Update Bank of Canada will cut rates later this year The Bank of Canada’s decision to hold interest rates at 0.50% and to remain neutral on the rate outlook was largely in response to the improvement in economic growth early this year, fiscal stimulus... 13th April 2016 · 1 min read
Canada Economics Update Rebound in business intentions unconvincing The Bank of Canada's first-quarter survey on business intentions suggests that the worst might be over for Canada’s struggling economy, but we don’t anticipate any significant improvement this year... 1st April 2016 · 1 min read
Canada Economics Update Federal stimulus budget won’t boost economy The 2016 Federal budget delivered today provides only a modest fiscal stimulus response to the flagging economy. Despite the more dismal GDP growth outlook this year, policymakers weren’t comfortable... 22nd March 2016 · 1 min read