Inflation in U.S. drops as consumer prices unexpectedly fell in June

U.S. consumer prices unexpectedly fell and the annual increase was the smallest in a year, reinforcing views that a trend of dropping inflation was back on track in the United States, and drawing the Federal Reserve another step closer to cutting interest rates. The consumer price index dipped 0.1 per cent last month after being unchanged in May, the U.S. Labour Department’s … Read more

Cutting interest rates was easy. But the Bank of Canada still has a credibility problem

Bank of Canada governor Tiff Macklem says the central bank has to rebuild trust with Canadian households. After the last two years of interest rate hikes and messaging missteps, that’s not going to be an easy job. The central bank cut rates this week for the first time since March 2022, when it embarked on one … Read more

‘We are getting closer’ to cutting interest rates, Bank of Canada governor tells MPs

The Bank of Canada is getting closer to cutting interest rates as inflation shows signs of coming down and staying down, the central bank’s governor, Tiff Macklem, told MPs Thursday. “We do see renewed downward momentum in underlying inflation. The message to Canadians is, we are getting closer. We are seeing what we need to … Read more

$350B in pandemic savings was supposed to give the economy a huge boost. It still hasn’t happened

After the pandemic hit in 2020, some business owners and households were hard hit financially as a result of lockdown measures. But at the same time, many Canadians saw their bank accounts grow because of their reduced spending. Those savings ballooned to over $300 billion and became so large that economists expected there would be … Read more

What does 2024 have in store for the Canadian economy?

It’s been a long time since economic data in Canada showed very much promise. The last 18 months have been defined by a cost of living crisis and a slowing economy. But a handful of economic indicators give us some hope for 2024. Inflation has slowed dramatically, and the economy didn’t actually slip into recession. … Read more