A new model by Dalhousie University’s food analytics lab has forecasted that compared to 2022, wholesale food prices in Canada, before goods are sold to grocers, will rise by 34 percent on average for all food categories by 2025. “It’s going to be quite problematic and I think we need to be ready for this,” Professor Sylvain…
Canada’s Wholesale Food Prices Will Rise by 34% on Average Between 2022 and 2025, Says Professor
Inflation Hits Lowest Level Since August 2021, but BoC Not Expected to Back Off Yet
The Bank of Canada is expected to keep interest rates elevated for some time even as the country’s annual inflation rate falls rapidly. Inflation in Canada dropped to 4.3 percent in March, Statistics Canada said in its latest consumer price index report released Tuesday. The headline rate eased from 5.2 percent in February as higher…
Bank of Canada Expects Canada to Avoid Recession, Some Economists Skeptical
News Analysis OTTAWA—Now is the time when the full effect of the Bank of Canada’s earliest interest rate hikes in 2022 are starting to take effect. While Canada’s central bank was caught off guard by a surprisingly strong first quarter of economic growth, it expects much weaker albeit slightly positive growth for the rest of…
Interest Rate Hold Could Add Heat to Real Estate Markets: Mortgage Experts
Mortgage experts expect the Bank of Canada’s decision to hold its key interest rate to add heat to the country’s real estate markets. The second consecutive hold since rates started climbing in March 2022, which leaves the overnight rate at 4.5 percent, will likely give buyers and sellers more confidence to make a purchase soon,…
Bank of Canada Holds Key Policy Rate at 4.5 Percent, Not Forecasting Any Recession
OTTAWA—After the Bank of Canada announced a pause on interest rate hikes in January, it continued to stay true to its word on April 12 by holding its overnight rate target at 4.5 percent, which was widely expected. Forecasts for much weaker but still positive economic growth were shifted further into the future after a…
Bank of Canada Expected to Hold Interest Rate on Wednesday
Economists from Canada’s major banks predict that the Bank of Canada will hold its key interest rate steady at 4.5 percent on Wednesday, as inflation in the country continues to slow. “After announcing a conditional pause on interest rate hikes in January, the central bank is widely expected to make a second consecutive decision to hold,”…
Most Canadians Think Feds’ High Spending Hampers Central Bank’s Inflation Fight: Survey
Most Canadians hold the view that high spending by the federal government is what hinders the nation’s central bank from taming inflation, according to a survey by the Bank of Canada (BoC). Released on April 3, the report, titled “Canadian Survey of Consumer Expectations—First Quarter of 2023,” also indicated that nearly one-third of Canadians believe…
Canada Heading Into ‘Mild Recession’ as Tight Monetary Policy Squeezes Growth: Report
New research says Canada is heading into a mild recession as elevated borrowing costs, a downturn in the U.S. and persistent inflation dial up the country’s economic uncertainty. Deloitte Canada’s latest economic outlook, released ahead of the federal budget on Tuesday, says tight monetary policy is set to squeeze economic growth this year. But the…
Canada’s Banking System Safe, Recession and High Unemployment Still Likely: Experts
Canada’s bank system is safe from widespread failure, but a recession coupled with high unemployment rates remains likely, expert witnesses told the House of Commons standing committee on finance March 23. Representatives from BMO and Desjardins Group answered MP questions about U.S. banking volatility and whether Canada’s banking system is in any danger. Canada’s banks…
Freeland Meets With Bank Regulator Head, BoC Following US Bank Collapse
Finance Minister Chrystia Freeland is assuring that Canada’s financial institutions are secure after meeting with the head of Canada’s bank regulator and the Bank of Canada. The meeting follows the closure of California-based Silicon Valley Bank by U.S. regulator on Friday, which also prompted Canada’s Office of the Superintendent of Financial Institutions (OSFI) to seize…
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