Weekly Digest Concerning Employment DataBeginning with the good news, local real estate board data show that sales in four of Canada’s major cities rose by 9% month over month in July. This includes a 13% rise in Toronto. There was also a 6% rise in national...
Weekly Digest Bank of Canada Holds SteadyThe recent rebound in core inflation and improved timely activity indicators prompted the Bank of Canada to keep rates on hold at 2.75% on Wednesday. Policymakers will also want to wait for more clarity on future trade relations with the...
Weekly Digest Factors Influencing Rate DecisionsEconomic GrowthThe economy is facing a period of weak growth as US tariffs and uncertainty over the future of the USMCA weigh on exports and investments.Uncertainty = Limited InvestmentForecast of weak GDP growth moving forward – just 1% annualized for 2025Activity...
Weekly Digest May Housing ReboundThe rise in home sales in May suggests a recovery is underway in the housing market following a tariff-induced shock.The 3.6% m/m rise in home sales in May marks the first consecutive month of demand growth in over half a year, after...
Weekly Digest GST Rebates for First Time BuyersStarting June 5th, The Liberal government has finalized the legislation to eliminate the GST portion on new home sales of up to $1 million. This applied to first-time home buyers. This will equate to as much as $50,000 off...
Weekly Digest Bank of Canada PausesThe Bank of Canada is juggling with unemployment risk on one side and inflation risk on the other. Wednesday, the Bank tried its best to keep a balance by holding its policy rate at 2.75%. Prime rate remains at 4.95%.Current markets...
Weekly Digest Tariff AppealA series of court rulings has thrown Donald Trump’s global trade war into legal battles.The US CIT has ruled that “the Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs”.That means...
Weekly DIgest Canadian Headline InflationHeadline inflation dropped to well under expectations. However, without the carbon tax adjustment, we'd be looking at something closer to 2.5%.Year-over-year: 1.74% (est. 1.6% | prior 2.3%)Month-over-month: -0.1% (est. -0.2% | prior 0.3%) Canadian Core InflationThe trouble lies with Core Inflation. Strip away the volatile...
Weekly Digest June Bank of Canada MeetingThe Bank of Canada is likely to resume cutting next month. Friday's dim jobs report has brightened prospects the Bank of Canada to reduce rates again.Although the Bank kept interest rates unchanged at 2.75% last month, the Summary of Deliberations...
Weekly Digest———April 14th, 2025 - April 20th, 2025 Bank of Canada HoldsDespite the economy facing the existential threat of 25% tariffs back in March, the Bank of Canada seemed reluctant to commit to aggressive policy loosening because of upside inflation risks. Underlying inflations pressures remain strong,What’s...