The U.S. Federal Reserve held interest rates steady on Wednesday and signaled it is still leaning toward eventual reductions in borrowing costs, but that cuts could be delayed as recent inflation numbers have strayed further from its two per cent target. Indeed, Fed Chair Jerome Powell said it was likely to take longer than previously expected for Fed officials … Read more
Nathaniel Erskine-Smith, the Liberal MP who made a name for himself as a backbencher with his own voice, posted a nine-minute video to YouTube this week about the federal government’s carbon pricing policy. It would be an exaggeration to say the video is setting the internet on fire. As of Friday afternoon, it had a … Read more
The Bank of Canada says business and consumer sentiment improved during the first quarter of the year, despite higher interest rates still putting a drag on the economy. The central bank on Monday released its business outlook and consumer expectations surveys, which showed increased optimism as people expect interest rate cuts are nearing. Although firms … Read more
A senior Bank of Canada official says the need to improve productivity has reached an emergency level as the economy faces a future where inflation may be more of a threat than in the past few decades. In a speech, senior deputy governor Carolyn Rogers says an economy with low productivity can only grow so … Read more
Canada’s annual inflation rate cooled to 2.8 per cent in February, helped by slower growth in the cost of cellular services, groceries and internet access services, Statistics Canada said Tuesday. Economists had largely expected the rate to rise to 3.1 per cent and undo some of the year’s early progress. Rent and mortgage interest costs continued to be primary … Read more
U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve. The consumer price index (CPI) rose 0.4 per cent last month after climbing 0.3 per cent in January, the Labour Department’s Bureau of Labour Statistics … Read more
The Bank of Canada has held its key interest rate at five per cent again, saying that it’s still too soon to consider rate cuts while underlying inflation persists. Economists were widely expecting the central bank to hold the rate. The bank said in a note on its website that it was still concerned about underlying inflation, which strips … Read more
The Canadian economy continues to beat recession fears, posting modest growth in the fourth quarter even as high interest rates weighed on consumers and businesses. Statistics Canada reported Thursday that real gross domestic product increased by an annualized rate of one per cent, beating economists’ expectations and the Bank of Canada’s forecast for the final … Read more
Canada’s annual inflation rate slowed to 2.9 per cent in January, mostly due to a deceleration in the price of gas, Statistics Canada said Tuesday. Economists were expecting the rate to come in at 3.3 per cent. Gas prices fell four per cent year over year in January after driving headline inflation up to 3.4 per cent in December, due to … Read more
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
