OTTAWA—The Bank of Canada raised its overnight rate target by a quarter percentage point (25 basis points) to 5 percent on July 12 in response to more persistent excess demand in the economy and slowing downward momentum with inflation. “Canada’s economy has been stronger than expected,” the BoC said in a statement. The central bank…

With interest rates on the rise and record-high inflation rates persisting, nearly half of Canadians say they have lost sleep due to financial stress this year, according to a new poll. “For the sixth year [in a row], Canadians say money is their top source of stress, with elevated inflation, higher gas prices and cost…

Commentary The Bank of Canada, as well as other central banks of Western nations, continues to raise interest rates. This program began in the summer of 2021 after it became apparent that the unprecedented expansion of the money supply due to the lockdowns has manifested in, at one point, almost double-digit inflation. The United States…

The Canadian labour market is showing some signs of softening as the unemployment rate rises and wage growth slows, but with another solid job gain last month, forecasters are still expecting a rate hike next week. Statistics Canada reported Friday the economy added 60,000 jobs in June, driven by gains in full-time work. But as…

Early signs of wage growth slowing are an indicator the Bank of Canada’s fight against inflation is slowly gaining ground, economists said, but it’s too soon to tell whether Canadians will regain the purchasing power they lost amid sustained price growth. “If wage growth is going to cool, then we better see inflation come down…

Canada’s housing market has good reason to be rising despite 4.5 percentage points of Bank of Canada interest rate hikes since March last year. But policy-makers are taking steps to contain risks stemming from the housing market and analysts expect prices to start dropping. “I’m pretty sure the Bank of Canada is not happy seeing…

Despite accusations of price gouging from some parliamentarians, there is no evidence that retailers, grocers, and wholesalers have increased their prices to take advantage of inflated supply-chain costs, says the Bank of Canada. “The cumulative growth of markups of consumer-oriented firms was close to zero between 2020 and 2022,” wrote the Bank of Canada (BoC)…

With mortgage rates at their highest level in more than a decade, home owners and prospective buyers tend to focus on getting the best rate. While shopping around, however, experts say borrowers shouldn’t forget about term length. Samantha Brookes, founder and CEO of Mortgages of Canada, says that before the Bank of Canada started raising…

A day after leading a four-hour filibuster to delay a vote on the Liberal government’s 2023 budget bill, Conservative Leader Pierre Poilievre called for Prime Minister Justin Trudeau to cancel his summer vacation in order to work on rewriting the legislation. “I’m calling on [Trudeau] to do the honourable thing. To put aside his pride and…

Amid another rate hike by the Bank of Canada, Finance Minister Chrystia Freeland attempted to alleviate Canadians’ financial concerns by highlighting the country’s economic recovery since COVID-19 began. “I absolutely understand the concerns Canadians have with mortgages today, and I understand the concerns Canadians have with inflation,” Freeland told reporters in Ottawa on June 7. “What…