Insights

The level of the overnight rate is still restrictive at 3.75% and the BoC in the press release hinted at future rate cuts will follow to support a return to stronger GDP growth.

Central banks’ inflation targets are in sight, but not all price trends have normalized. Inflation isn’t the headache it was, but investors should keep it in mind in their asset allocation decisions.

The influx is continuing to build inventory—which is still hovering near the equivalent of four months of supply.

The Fed has finally aggressively lowered interest rates. While a steeper yield curve reflects the market’s optimism that rate cuts will shore up the economic outlook, further steepness could be a sign the Fed will cut rates deeply, likely due to a re

Canada is back at 2% inflation, but it’s too soon to pop the champagne. What’s driving prices now looks very different from before the pandemic.

After a first interest rate cut in June, the Bank of Canada (BoC) again lowered its key overnight rate by 25 basis points at its meeting Wednesday, to 4.5%. The move was in line with market and our own expectations ahead of the announcement.

The latest Business Outlook Survey largely confirmed further normalizing in a few key areas that the central bank has deemed critical to future inflation trends.

Proof point: The timing and magnitude of interest rate cuts from the Bank of Canada will be determined by domestic economic and inflation conditions and not the gap in monetary policy with the U.S. Federal Reserve or the value of the Canadian dollar....