Economic News and Forecasts
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GDP Numbers for January Released
Mar 31, 2022 | Economic News and ForecastsStatistics Canada today released the January GDP numbers. The economy overall posted a 0.2% increase for the month, in spite of COVID-related lockdowns. Leading the charge were construction (up 2.8%), utilities (a 4.0% increase) and retail spending (up 2.6%)...
Bank of Canada Increases Interest Rates as Expected
Mar 2, 2022 | Economic News and ForecastsThe Bank of Canada (BoC) today announced it was increasing its benchmark interest rate to 0.50%. This is a quarter-point hike from the "effective lower bound" rate of 0.25% that has been in effect since the onset of the pandemic...
Q4 and Full Year 2021 GDP Numbers Are In, And They Look Pretty Good!
Mar 1, 2022 | Economic News and ForecastsStatistics Canada today released Q4 and full year GDP results. StatsCan reports the economy grew 1.6% in Q4, an annualized rate of 6.4%, and that growth for the full year was 4.8%. Growth for the quarter was above the 5.8% the Bank of Canada estimated in its January Monetary Policy...
Bank of Canada January Monetary Policy Report Sets the Stage for Interest Rate Hikes
Feb 10, 2022 | Economic News and ForecastsThe latest Bank of Canada Monetary Policy Report (MPR), released January 26, builds on their January 26 interest rate announcement (see below) and makes it very clear that an interest rate increase can be expected sooner rather than later...
StatsCan Releases November 2021 GDP Growth, Sneak Peek at Q4 and FY2021 Numbers
Feb 1, 2022 | Economic News and ForecastsStatistics Canada figures released today showed that Canada's GDP rose 0.6% in November, with growth in both goods- and services-producing industries at about that level. Of interest to DHI members, non-residential construction grew by 0.5% in November...
BoC Holding Interest Rate Again, But Maybe For The Last Time
Jan 26, 2022 | Economic News and ForecastsThe Bank of Canada (BoC) announced today that it is again holding its benchmark interest rate at the effective lower bound of 0.25%, but it has removed its "extraordinary forward guidance", meaning that we can expect the rate to rise as early as early March...
US Fed Also Opens The Door To March Interest Rate Hikes
Jan 26, 2022 | Economic News and ForecastsThe Federal Reserve's Federal Open Market Committee (FOMC) , like the Bank of Canada (BoC), held the line on interest rates but, again like the BoC, signalled that rates could soon go up. Today's statement by the FOMC said rate hikes "will soon be appropriate" in light of continuing high...
US Fed Sounding More Hawkish
Dec 16, 2021 | Economic News and ForecastsThe US Federal Reserve finished two days of meetings yesterday and issued a statement speeding up the end of its quantitative easing (QE) program. Original plans would have had it completely wound down by mid-2022 but, with yesterday's announcement, it looks to finish in March...
Federal Government's Fall 2021 Economic Statement
Dec 15, 2021 | Economic News and ForecastsThe federal government yesterday presented their fall 2021 economic statement. Their forecast for GDP growth was 4.6% in 2021, 4.2% in 2022 and 2.8% in 2023; the 2021 figure was lower by 1.2 percentage points than projected in the April budget, but 2022 and 2023 are "broadly in line...
BoC Interest Rate Announcement - Same As It Ever Was
Dec 8, 2021 | Economic News and ForecastsThe Bank of Canada announced its overnight lending rate today and, to no one's surprise, it remains at 0.25%. The announcement reaffirms the Bank will not raise the rate until current economic slack is absorbed, sometime in the middle quarters of 2022...