All eyes are on this Wednesday’s Bank of Canada’s interest rate announcement. Financial markets have priced in a 75 basis point increase in the benchmark overnight rate, matching the last move by the US Federal Reserve as both central banks… Read More ›
Economy
E-Sight July 4: Canadian economy solid in April weakens in May, Deloitte economic outlook
The Canadian economy grew by 0.3 per cent in April with growth in 13-of-20 industries. Goods-producing firms increased 0.9 per cent, outpacing a slim 0.1 per cent gain by services. While the April gain was solid, Statistics Canada’s flash estimate… Read More ›
Economic Outlook June 2022
In our newest economic outlook, we foresee a sharp slowdown in growth in the second half of this year as rapid inflation and rising interest rates act as a powerful headwind on the economy. This moderates consumer spending and triggers a… Read More ›
E-sight Weekly June 27: Understanding the Inflation Shock
The main economic release last week was the Canadian Price Index for May, which showed Canadian inflation rose to 7.7 per cent, the fastest pace since 1983. The biggest contributors were gasoline, hotels, restaurants, food prices, shelter main contributors. Gasoline was a… Read More ›
E-Sight Weekly: Canada posts solid job creation, wage growth accelerates, Macklem hawkish
The latest Canadian employment report once again showed an economy with momentum and struggling with labour shortages. 40 thousand net new jobs were created in the month of May, which is a strong performance – an average monthly gain is… Read More ›
E-Sight Weekly June 6: Canadian GDP and Bank of Canada Policy Tightening
Last week had a very heavy economic calendar, with the Bank of Canada policy announcement and real GDP for the first quarter being the main events. The key takeaways are that while the Canadian economy had good momentum early this year,… Read More ›
E-Sight Weekly November 1: Growth, Inflation and Labour Shortages
The Bank of Canada’s monetary policy announcement was the main event last week, which I already covered in a commentary, so I won’t go into a lot of details. The Bank announced an end of its Quantitative Easing (QE) program,… Read More ›
E-Sight October 27: Bank of Canada ends quantitative easing helping to anchor inflation expectations
In a keenly awaited policy statement, the Bank of Canada announced that while it was leaving the overnight rate unchanged at 0.50% it was ending its quantitative easing program. The bond buying will continue, but only reinvesting maturing bonds. The Bank’s… Read More ›
E-Sight January 29: Canadian Economy Shows Surprising Strength in November
Today’s GDP release from Statistics Canada confirms just how bad the economic decline was in 2020. However, the release also provides some good news that the economy is weathering the recent public health restrictions better than expected. According to today’s… Read More ›
E-sight January 28: Recent Pandemic Control Measures Weigh on Small Business Confidence
The Canadian Federation for Independent Business (CFIB) reported this morning that both short- and longer-term confidence of small businesses was flat in January as the pandemic continues to weigh on firm’s prospects. The three-month index held steady this month at… Read More ›
Alexander Economic Views 