Canada’s economy is still cranking out growth, but the details aren’t encouraging. Statistics Canada (Stat Can) data shows higher-than-expected gross domestic product (GDP) growth in November. It was positive news, but economists remain cautious and warn that consumers are weakening. GDP growth couldn’t even match the robust population growth, reinforcing slowdown concerns. Canada’s Economy Is […]
Canadian markets have begun discussing rate cuts, and that’s a reason we might not see one this year. BMO Capital Markets wrote to investors over the weekend, outlining their expectations for a rate hike this week. Their forecast currently sees the Bank of Canada (BoC) hitting pause after the next hike, but they warn it […]
Despite the gloomy outlook, Canada is still churning out hot employment data. Statistics Canada (Stat Can) data shows the economy added over 100,000 jobs in December. Along with higher participation, this helped drive the unemployment rate within spitting distance of the record. At least one Big Six bank sees another rate hike, with robust job […]
Canada is seeing new housing starts begin to fizzle, with November’s growth largely flat. It might present a concern for many, but BMO Capital Markets explained it shouldn’t. In the bank’s latest research note, they argue new housing starts are still very high. A record number of new homes are under construction, and a lot […]
Canadians believe interest rates will fall soon, and it’s now obvious in real estate. That’s the take from BMO Capital Markets, who sees this having unintended consequences. In a weekend research piece, they explain more investors are holding out for rate cuts. This will lead to maintaining lofty growth expectations and sticky inflation, making cuts […]
Cracks in America’s booming job market are starting to appear, warned Canada’s oldest bank. BMO Capital Markets outlined a divergence between US payroll and household-survey employment. The bank warns this is the largest divergence on record, outside of the pandemic—indicating the market might be weaker than it appears. US Payroll and Household Employment The US […]
Canada’s economy is growing, but don’t let the headline data fool you—the country is still heading for recession. Statistics Canada (Stat Can) gross domestic product (GDP) data showed big growth in Q3 2022. However, taking a dive past the headline number reveals things aren’t as great as they might appear. Household spending made a rare […]
Canadian real estate found its footing last month, according to the industry. However, Canadian Real Estate Association (CREA) data tells a completely different story in the October numbers. Yes, seasonally adjusted home sales were higher than the month before, but it was still the worst October since the Global Financial Crisis. Home prices also saw […]
Every asset bubble has common issues, and leads to a scramble to identify which bubble we’re in. After all, if you identify which bubble this is like, you might be able to identify the outcome. BMO Capital Markets shared the similarities of this cycle with five major booms-and-busts. Here’s what’s similar, and what isn’t. Post-War […]
Canada’s variable rate mortgage borrowers—brace yourself. BMO Capital Markets has made another upward revision to its interest rate forecast this week. The bank was forced to make a revision as sticky inflation and rising wages require much higher interest rates to cool activity. Canada’s overnight policy rate is now forecast to hit the highest level […]
