Skip to main content

Featured

Canada's Economy Just Grew 3.3% — Here's Why That Makes a September Rate Cut Even Less Likely

  Published August 29, 2026 If you've been holding out hope that a slowing economy might finally push the Bank of Canada toward a rate cut, Friday's numbers just closed that door a little further. Statistics Canada reported that the Canadian economy grew at an annualized pace of 3.3% in the second quarter — the fastest rate since 2023 — and revised figures show the first quarter expanded 0.3% rather than shrinking as originally reported. That confirms Canada never actually slid into a technical recession this year. It's good news for the economy. It's less good news if you were counting on lower borrowing costs anytime soon. What actually drove the growth The rebound was broad-based. Exports posted their strongest performance in 39 months, business investment in factories, equipment and commercial real estate jumped, and consumer spending held up as well. On a per-person basis, output grew at a 3.8% annualized clip — the quickest pace since late 2021, even with Canada...
Post a Comment
Read more

article

Labels

Bank of Canada Slashes Rates by 50 Basis Points as Inflation Stabilizes

The Bank of Canada (BoC) has made a significant move by cutting its key interest rate by 50 basis points, bringing the overnight rate down to 3.75%. This decision, announced on October 23, 2024, marks the central bank’s fourth consecutive rate cut since June.

The BoC’s aggressive rate cuts come as inflation has returned to target levels, providing the central bank with the confidence to ease monetary policy further. Governor Tiff Macklem emphasized that the rate cut aims to support economic growth and ensure that inflation remains within the desired range.

Economists had widely anticipated this move, given the recent trends in economic data and the central bank’s commitment to maintaining price stability. The BoC’s decision reflects its proactive approach to managing the economy amid global uncertainties and domestic challenges.

With this latest rate cut, the Bank of Canada continues to navigate the delicate balance between fostering economic growth and keeping inflation in check. The central bank’s actions will be closely watched as they impact borrowing costs, consumer spending, and overall economic activity in the coming months.


Labels:

Comments

Post a Comment