Canada’s unemployment rate rose to 5.2 per cent in May, Statistics Canada said Friday, a sign of weakening in the country’s tight labour market that will help inform the Bank of Canada’s future interest rate decisions. Employment overall was little changed in the month, the agency said, with a modest 17,000 jobs lost. Employment fell
The Bank of Canada’s interest rate pause is set for its toughest challenge yet on Wednesday as policymakers weigh whether another hike is needed to quell a resilient economy and push inflation down further. While money markets and some economists say that another hike is in the cards for this week’s interest rate decision, those
Republican leaders in the House of Representatives and the White House have reached an “agreement in principle” to raise the debt ceiling — just over a week before the deadline to avoid a potential default. Republican Speaker Kevin McCarthy first tweeted the news Saturday night. He said the parties have come to an “agreement in
Canadian economists are growing increasingly nervous as the United States inches closer to a potential default due to an impasse in debt ceiling talks. That’s not just because a default, which could happen as soon as the end of this month without a deal, would be catastrophic for the American and global economies. It’s also because
The Bank of Canada wants to know what Canadians think about the possibility of a digital loonie. Consultations on what Canadians would like to have included in a digital currency are open online from May 8 until June 19, the Bank of Canada said Monday.The central bank notes, however, that the decision to launch a
The head of the Bank of Canada poured water on market expectations for interest rate cuts in 2023 as the central bank maintained its key policy rate on Wednesday. The Bank of Canada held its benchmark interest rate at 4.5 per cent in a second consecutive decision, a move largely in line with economists’ expectations.Though
The Bank of Canada is expected to hold its key interest rate steady this week as inflation continues to slow, despite other data suggesting the economy is still running hot. The central bank is set to announce its next interest rate decision on Wednesday. The announcement will be accompanied with updated economic projections for growth
It’s a question that’s dominated the news cycle, stock market watchers, economic analyses and even Ottawa’s 2023 budget — will Canada’s previously roaring economy coast into a so-called “soft landing” as it slows, or tumble sharply into a recession? Ongoing calls from a chorus of economists predicting a recession to hit Canada in 2023 have
Canada’s Liberal government is in a tight spot heading into the 2023 federal budget. A year of surging prices and rising interest rates has put fresh stress on Canadian households struggling to make ends meet.Landmark investments in the green transition from the United States have turned up the heat on the Canadian government as it
The annual rate of inflation cooled to 5.2 per cent in February, Statistics Canada says, though Canadians continued to feel the pain of surging costs at grocery stores. That compares to an overall inflation rate of 5.9 per cent in January; StatCan said February’s CPI drop marks the largest deceleration in headline CPI since April