Bank of Canada Raises the Overnight Rate to 2.5%, Says More May Be Needed Today, the Bank of Canada raised the overnight rate by 25 bps to 2.5%, joining the six other G-10 central banks that have tightened monetary policy to combat inflation. The Federal Reserve hiked the fed funds rate at its last meeting […]

Canadian CPI Inflation Edges Up to 3.1% in September, While Core Inflation Slowed Further Below Its 2% Target The Consumer Price Index (CPI) rose 3.1% year over year in September, up from 3.0% in August. Higher gasoline prices led the acceleration in September (+27.8%) compared with August (+22.8%). Excluding gasoline, the CPI rose 2.2%, after increasing 2.4% in […]

Rising-Rate Jitters Sidelined Buyers in September, Tempering Sales For The Remainder Of This Year The number of home sales recorded over the Canadian MLS Systems fell by 2.3% m/m in September as inflation fears triggered the biggest bond selloff in years. Rising fixed mortgage rates have spooked potential buyers, even as home prices continue to […]

The Very Weak September Jobs Report For Canada Will Give the BoC Second Thoughts About Hiking Rates Employment fell in September, continuing a stream of lackluster labour force surveys. Canadian jobs fell by 68,300, wiping out all of this year’s job gains as the trade war with the U.S. drags on and the Iran war […]

New Listings Up, Sales Down, and Prices Flat: What Does It Mean for the Fall Real Estate Market?  The Canadian Real Estate Association (CREA) released their August data, which shows that home sales are down 0.7% nationally in the past month. It also showed that although home prices remained flat since July, they are down […]

Inflation Remains at 3%, But Drivers Are Changing  August inflation data is now out, and the headline is of course a 3% year over year increase for August. Compared to July, it’s actually down by 0.1% (not seasonally adjusted). If we exclude gasoline, the number drops to 2.4% for August. The main drivers of inflation […]

Weak August Jobs Report In Canada Takes BoC Tightening Off The Table–The Opposite Is Likely For Federal Reserve  Employment in Canada fell by 41,700 in August, reversing some of the labour market momentum seen in recent months as the manufacturing sector posted the only significant increase. The employment rate fell 0.1 percentage points to 60.8%. The […]

Bank of Canada Holds Policy Rate Steady Again, As Expected Today, the Bank of Canada once again held the policy rate at 2.25%, the level it has held since October 2025. This is the bottom of the Bank’s estimate of the neutral overnight rate, where monetary policy is neither expansionary nor contractionary. According to the […]

Canada’s Economy Grows by 3.3% in Q2 as Q1 Was Revised Into Positive Territory Statistics Canada reported this morning that the Canadian economy grew at a whopping 3.3% pace in the second quarter, following an upwardly revised 0.3% in Q1 led by upward revisions to exports, particularly non-metallic minerals and energy products.  This wipes out […]

Housing Market Activity Picked Up Again in July As New Listings Slowed and Prices Ticked Up For the First Time in Almost Two Years According to data released this morning by the Canadian Real Estate Association (CREA), the Canadian housing market continued to improve in July. Home sales increased month-over-month (m/m) by 0.5%, marking the […]