Month: July 2023

Canadian Inflation Falls Within Bank of Canada’s Target Range, but Food and Shelter Costs Remain High June inflation data released today by Statistics Canada showed that the Consumer Price Index (CPI) rose 2.8% year-over-year (y/y), slightly below expectations. This was the lowest CPI reading since February 2022. The decline in inflation was mainly due to lower…

Dr. Sherry Cooper joined Dominion Lending Centres and Greg Domville for In Conversation to discuss the latest updates from the Bank of Canada as of July.

Bank of Canada June Rate Hike Spooks the Housing Market The Canadian Real Estate Association says the BoC’s surprise rate hike in early June cooled activity following a two-month solid start to the spring housing season. Home sales posted a 1.5% gain between May and June, tepid by recent standards. Sales were up in June in…

The Bank’s hawkish tone on Wednesday sent a clear message The Bank of Canada now expects that inflation will not hit its 2% target until the middle of 2025 – and interest rates are likely to remain elevated for a prolonged period if it is correct, according to a top economist. Sherry Cooper, chief economist…

Interest Rates Will Stay Higher For Longer The Bank of Canada increased the overnight policy rate by 25 basis points this morning to 5.0%, its highest level since March 2001. Never before has a policy action been so widely expected. Still, the Bank’s detailed outlook in the July Monetary Policy Report (MPR) suggests stronger growth and…

It’s a Close Call Which Way the Bank Will Go Employment growth last month came in at a whopping 60,000 jobs, tripling expectations, and most of those net new jobs were for full-time workers. As our population grows, more people are available to fill job vacancies. Employment rose in wholesale and retail trade (+33,000), manufacturing (+27,000),…