Blogs

Canada With inflation firmly within its target range (1-3%), the Bank of Canada (BoC) reduced its target for the overnight rate again in January, cutting the benchmark by a further twenty-five basis points (0.25%) to 3%. The ongoing cuts not only signal...

The significant risk that tariffs pose to Canada’s economy casts a potentially dark shadow over the housing market.

Tariffs can have many economic impacts, but we think investors should focus on the economic and political goals that are driving decision-making.

Canada has been hit with its largest trade shock in nearly 100 years. RBC Economics now finds itself balancing the desire to produce a clear analysis with the recognition that the evolution of trade policies, and policymakers’ responses to them, still...

U.S. President Donald Trump has taken office, and understandably, there is growing concern about what threatened American tariffs could mean for the Canadian economy. Economists have a head start this time around—it isn’t our first pass at assessing the...

Homeownership costs have eased for three consecutive quarters in Canada. The share of income a household needs to cover mortgage payments, property taxes and utilities has fallen nationwide to 58.4% by Q3 after reaching an all-time high of 63.8% in Q4...

Given the political uncertainty facing Canada, the fate of many of the measures announced in the 2024 Fall Economic Statement is highly uncertain. However, the fiscal update still serves as a snapshot of where the economy is headed and how upcoming challenges...

The Bottom Line: As expected, the Bank of Canada (BoC) cut the overnight rate by another 50 bps to 3.25% on Wednesday, right to the top end of the BoC’s “neutral” range estimate (2.25% – 3.25%). Macklem’s opening statement made clear that with interest...

Despite potential headwinds, we are generally constructive on Canadian markets, though we expect less outperformance in credit.