![]() ![]() Canadian autoworkers approve strike mandate at the Big Three.Canada needs to boost charging infrastructure to encourage more people to buy EVs, study says.Canada and United States, which escaped the extremes of the natural gas price shock in 2022, have managed to bring price growth much closer to the 2 per cent target. In Italy the consumer price index which peaked at over 12 per cent has dropped back to 6.3 per cent. “Compared to last year’s eye-watering levels today’s above-trend price gains look quaint,” writes TD senior economist Andrew Hencic. Inflation is easing in advanced economies, now that the energy price surge of last year has receded, says TD Economics. Was this newsletter forwarded to you? Sign up here to get it delivered to your inbox. Investors are still betting on another before the end of the year, with rates peaking at 5.25 per cent. Money markets see a 70 per cent chance that the Bank will hold in September, but that doesn’t mean we are done with interest rate hikes. Job vacancies out next week should show further declines, said the economists.Ī dock workers strike last month in British Columbia will also have had an impact. Labour markets have shown signs of cooling, with the unemployment rate rising 0.5 percentage points in the three months to July. Statistics Canada will also release a preliminary estimate for July on Friday and early data suggest weakness continued in the third quarter, said RBC. “The wildfires will make the Bank’s job harder as it will be tricky to determine the exact extent to which any weakness in the data is due to the wildfire disruption rather than the impact of high interest rates,” said Brown. ![]() The impact also showed up in June in a fall in manufacturing and wholesale sales, with large declines in Alberta and Saskatchewan, which were heavily affected by wildfires at the time, he said. Oil and gas extraction fell 3.6 per cent month over month in May as some producers stopped operations as a precaution against the fires. Wildfires so far have burned more than double the hectares of forest than during the previous worst year in 1989, he said. Stephen Brown, deputy chief North America economist at Capital Economics, said the worst Canadian wildfires on record appear to be behind much of the recent weakness in GDP and as more areas are evacuated, growth will likely remain weak in coming months. This advertisement has not loaded yet, but your article continues below. Some of the drags on the economy in recent months are transitory, economists say, such as the wildfires still raging in Canada. “But we expect there will be enough signs of cooling demand to-date for the BoC to forego another increase in the overnight rate in September.” “Policy makers clearly are willing to respond with additional interest rate hikes if momentum in the economy isn’t softening enough to ensure inflation pressures will trend lower,” said RBC economists Nathan Janzen and Claire Fan. Both are below the Bank of Canada’s estimate of 1.5 per cent. Activate your Online Access Now Article contentĮconomists expect to see a slowdown in the economy in the second quarter that could persuade the central bank to pause its interest rate hiking despite a recent inflation reading that came in hotter than expected.Įarlier this month bets on another hike in September rose after July’s consumer price index surged to 3.3 per cent, moving beyond the Bank of Canada’s target range of between one and three per cent.Īfter growing 3.1 per cent in the first quarter, the preliminary estimate for GDP in the second is 1 per cent, said Royal Bank of Canada economists, but they see it coming in even lower at 0.5 per cent. The weights are derived from business credit data.If you are a Home delivery print subscriber, unlimited online access is included in your subscription. Weighted-average borrowing rate for new lending to non-financial businesses, estimated as a function The effective interest rate for businesses is a The weights are derivedįrom residential mortgage and consumer credit data, adjusted for additional information provided by Weighted-average of various mortgage and consumer credit interest rates. The effective interest rate for households is a The Investment Industry Regulatory Organization of Canada ( IIROC) will start publishing for informational purposes only the 1- and 3-month transaction based BA rates on the same date. As of January 2019, the Bank of Canada will no longer publish the daily, weekly or monthly prime commercial paper (CP) or bankers’ acceptance (BA) rates. As of 1 October 2015, Overnight Repos and Overnight Reverse Repos, formerly called Special Purchase and Resale Agreements and Sale and Repurchase Agreements, are transacted on a cash-value basis. Rate compiled at the end of the day by the Bank of Canada through a survey of major participants in the The OMMFR is an estimate of the collateralized overnight ![]()
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