Found 9 blog entries tagged as Bank of Canada.

The Bank of Canada held its overnight rate steady this morning at 2.25%. In the statement accompanying the decision, the Bank noted that the Canadian economy will likely continue to be challenged over the next year by trade volatility, but it expects underlying domestic demand to firm up in 2026.

On inflation, the Bank expects CPI inflation to remain close to its 2% target, though it still assesses underlying or core inflation at closer to 2.5%. Overall, the Bank judges the current level of its policy rate to be the right level to keep inflation at its target while helping the economy adjust to the current period of global trade upheaval.

The complexities of global trade tensions still mean some downward pressure on growth coupled with potential…

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Date Published: July 15, 2025

Canadian prices, as measured by the Consumer Price Index (CPI), rose 1.9 per cent on a year-over-year basis in June, up from a 1.7 per cent increase in May. Month-over-month, on a seasonally adjusted basis, the CPI was up 0.2 per cent in June.

Upward pressure on headline inflation was largely driven by a slower fall in gasoline prices year-over-year compared to May, along with higher price growth for durable goods (2.7 per cent). Additionally, shelter price growth continues to cool, with prices growing by 2.9 per cent in June, slightly down from 3.0 per cent in May.

Furthermore, the CPI excluding energy rose by 2.7 per cent in June. Food purchased in grocery stores rose at a slower pace of 2.8 per cent year-over-year…

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Date: July 11, 2025

Canadian employment increased by 0.4 per cent from the previous month, gaining 83,000 jobs to reach 21.061 million in June. The employment rate rose by 0.1 points to 60.9 per cent, while the unemployment rate fell by 0.1 points to 6.9 per cent.

Average hourly wages rose 3.2 per cent year-over-year to $36.01 last month, while total hours worked increased by 1.6 per cent compared to June of the previous year.

Provincial Highlights: British Columbia

Employment in B.C. rose by 0.2 per cent to 2.968 million, gaining 5,000 jobs in June. Employment in Metro Vancouver rose by 1.1 per cent to 1.735 million.

The unemployment rate in B.C. fell by 0.8 points to 5.6 per cent, while Vancouver's unemployment rate fell by 0.6…

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Canadian employment was virtually unchanged from the previous month, gaining 8,800 jobs to reach 20.978 million in May. The employment rate held steady at 60.8%, while the unemployment rate increased by 0.1 points to 7.0%.

Average hourly wages saw a 3.4% year-over-year increase, rising to $36.14 in May. Additionally, the total hours worked rose by 0.9% compared to May of the previous year.

British Columbia Employment

Employment in B.C. rose by 0.4% to 2.963 million, with a gain of 13,000 jobs in May. In Metro Vancouver, employment increased by 0.9% to 1.715 million.

Despite job gains, the unemployment rate in B.C. rose by 0.2 points to 6.4%, while Vancouver's unemployment rate climbed 0.3 points to 6.6%.

Market Implications

May's…

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The Bank of Canada held its overnight policy rate at 2.75 per cent this morning. In the statement accompanying the decision, the Bank noted US trade policy continues to create uncertainty in the global economy and that uncertainty is likely to slow economic growth in coming quarters.

On inflation, the Bank cited stronger than expected inflation in April and survey data showing household inflation expectations rising due to tariffs as concerning trends in the evolution of inflationary pressures.

While we know with a high degree of certainty that trade wars are stagflationary – they slow growth and raise prices – what we don't know yet is how severe a trade war may be or even if it will end up materializing at all.

The immediate impact of that…

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Canadian real GDP rose by 0.1 per cent in March, after declining by 0.2 per cent in February. Goods-producing sectors rose 0.2 per cent, while service-producing industries increased by 0.1 per cent.

Sectoral growth was led by:

  • Mining, quarrying, and oil and gas extraction (2.2 per cent)
  • Construction (0.5 per cent)
  • Retail trade (0.8 per cent)

Output for the offices of real-estate agents and brokers fell by 4.5 per cent month-over-month. Preliminary estimates suggest that real GDP by industry increased by 0.1 per cent in April.

Q1 2025 Performance

Real GDP increased by 0.5 per cent in the first quarter of 2025, registering an annualized growth rate of 2.2 per cent.

Household spending growth slowed to 0.3 per cent, leading to…

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Canadian prices, as measured by the Consumer Price Index (CPI), rose 1.7 per cent on a year-over-year basis in April, down from a 2.3 per cent increase in March. Month-over-month, on a seasonally adjusted basis, the CPI was down 0.2 per cent in April.

The overall slowdown in headline CPI is largely driven by lower energy prices, catalyzed by the removal of the consumer carbon tax. The CPI ex-energy rose by 2.9 per cent in April.

While shelter costs remain the main driver of inflation, grocery price growth has also outpaced the headline CPI over the past three months, with prices rising 3.8 per cent year-over-year in April.

In British Columbia, consumer prices rose 2.0 per cent year-over-year, down from 2.6 per cent in March. The Bank of…

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Canadian prices, as measured by the Consumer Price Index (CPI), rose 2.3 per cent on a year-over-year basis in March, down from a 2.6 per cent increase in February. Month-over-month, on a seasonally adjusted basis, the CPI was unchanged in March.

The overall slowdown in headline CPI is largely driven by lower gasoline prices, with the CPI excluding gasoline rising by 2.5 per cent in March.

Shelter price growth continues to cool, as mortgage interest costs were up 7.9 per cent, marking the nineteenth consecutive month of deceleration. Similarly, rent was up 5.1 per cent year-over-year in March, down from 5.8 per cent in February.

In British Columbia, consumer prices rose 2.6 per cent year-over-year, down from 3.0 per cent in February.

The Bank…

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The Bank of Canada held its overnight policy rate at 2.75 per cent this morning. In the statement accompanying the decision, the Bank noted that pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada.

The Bank sees two potential scenarios for the Canadian economy:

  • High but limited tariffs that temporarily weaken growth
  • A protracted trade war that causes both a full recession and inflation to rise above 3 per cent

The Bank is already seeing signs of a slower economy due to the impact of uncertainty on consumer and business confidence. However, it expects tariff-driven supply chain disruptions will put upward pressure on prices later this year.

Perhaps most importantly, the Bank ended its…

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