September 1, 2023

Category: About Sherry Articles Media Reporting on Sherry

Rate Hikes Off The Table With Weak Q2 GDP Growth In Canada

Rate Hikes Are Definitely Off The Table The Canadian economy weakened surprisingly more in the second quarter than the market and the Bank of Canada expected. Real GDP edged downward by a 0.2% annual rate in Q2. The consensus was looking for a 1.2% rise. The modest decline followed a downwardly revised 2.6% growth pace…

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August 15, 2023

Category: About Sherry Articles Media Reporting on Sherry

Canadian Home Sales Dipped In July, New Listings Rose, And Prices Edged Up Modestly

Housing Market Sales Dipped in July, Spooked By Rate Hikes According to Shaun Cathcart, the Canadian Real Estate Association’s Senior Economist, “Following a brief surge of activity in April, housing markets have settled down in recent months, with price growth now also moderating with its usual slight lag. Sales and price growth are already showing signs…

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August 15, 2023

Category: About Sherry Articles Media Reporting on Sherry

Canadian Headline Inflation Rises to 3.3%, But Core Inflation Shows Promise

July Headline Inflation Rose to 3.3%, But Core Inflation Improved The Consumer Price Index (CPI) rose 3.3% y/y in July, up from a 2.8% rise in June. The acceleration in headline inflation was widely expected due to a base-year effect on gasoline prices, as a sizeable monthly decline in July 2022 (-9.2%) no longer impacts the 12-month movement. Excluding…

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August 4, 2023

Category: About Sherry Articles Media Reporting on Sherry

Weaker Than Expected Jobs Report Portends No Rate Hike By BoC

The Long-Awaited Labour Market Slowdown The Canadian economy shed 6,400 jobs in July, far weaker than the 25,000 gain that was expected. The jobless rate was 5.5%, the third consecutive monthly rise. This likely improves the chances the Bank of Canada will remain on the sidelines in September. Wage inflation, however, re-accelerated, moving back to…

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July 18, 2023

Category: About Sherry Articles Media Reporting on Sherry

CPI Inflation Falls To 2.8%–Inside the BoC’s Target Range

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…

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July 14, 2023

Category: About Sherry Articles Media Reporting on Sherry

June Home Sales in Canada Slowed As Prices Edged Downward

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…

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July 14, 2023

Category: About Sherry Articles Media Reporting on Sherry

Interest rates likely to remain higher for longer, says DLC’s Cooper

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…

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July 12, 2023

Category: About Sherry Articles Media Reporting on Sherry

Bank of Canada Hikes Policy Rate By 25 BPs to 5.0%–Highest in 22 Years

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…

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July 7, 2023

Category: About Sherry Articles Media Reporting on Sherry

Strong Canadian Job Growth in June Will Not Please The Bank of Canada

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),…

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June 27, 2023

Category: About Sherry Articles Media Reporting on Sherry

May Inflation Numbers Were Good, But Will They Satisfy the Bank of Canada?

Will the May Inflation Decline Thwart Another Rate Hike in July? The May inflation data, released this morning by Statistics Canada, bore no surprises. The year-over-year (y/y) inflation measured by the Consumer Price Index (CPI) at 3.4% was just as expected–down a full percentage point from the April reading. This is the smallest increase since June 2021. Economists…

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