The Canadian economy has outperformed the central bank’s expectations for months now. That didn’t stop the Bank of Canada (BoC) from slashing the overnight rate by 0.25 points to 2.75% this morning. Since this easing cycle began 9 months ago, the key policy rate has been reduced by 2.25 points, making it one of the […]
Canada’s last job report didn’t have a frenzy of good news, but there was one highlight—wage growth. That was the take from BMO Capital Markets, who wrote to investors this morning about the substantial wage growth in February. Even with inflation set to rise and erode some of that growth, workers saw their weekly pay […]
Canada has some of the most highly indebted households in the world, and they may be approaching their breaking point. Office of the Superintendent of Bankruptcy (OSB) data shows December was one of the busiest in years for consumer insolvencies. The year ended with the most filings since 2009, growing at a pace similar to […]
Canada’s economy is slowing down but that’s not deterring households from borrowing. Statistics Canada (Stat Can) data shows growth of household debt accelerated in November. The move was led by higher demand for mortgage credit which has accelerated over the past year, but still remains below historic levels. Canadian Household Debt Tops $3.02 Trillion Canadian […]
Canada’s central bank sees the economy getting a big boost from falling rates. The latest Bank of Canada (BoC) forecast shows real gross domestic product (GDP) rising sharply next year. Falling rates are expected to drive a big jump in housing investment, boosting real GDP. Not surprising, most of the real estate industry also expects […]
Canadians are more excited at the thought of cheap credit than actually getting it. Statistics Canada (Stat Can) data shows household credit grew in August—though at a slower rate than the month before. The mild acceleration in borrowing ahead of rate cuts reversed once the actual cuts were made. It potentially serves as a red […]
Canadian households are struggling to carry some of the biggest debt loads in the world. Office of the Superintendent of Bankruptcy (OSB) data shows consumer insolvencies just had the second-biggest August on record. The move wasn’t exactly surprising and builds on a trend that’s seen consumer insolvency filings rise to a level not seen outside […]
Canadian consumers are known for their resilience, but that luck might be running out. Office of the Superintendent of Bankruptcy (OSB) filings show consumer insolvencies had one of the biggest June’s on record. A sudden surge of consumer insolvencies over the past year has the annual volume at the third-largest peak on record, and the […]
Canadians aren’t acting like themselves and it may be a sign of a more concerning trend brewing. Bank of Canada (BoC) data shows annual household credit growth decelerated in May. Just off multi-decade lows, despite cheaper credit on the way, households are pulling back on borrowing. The low growth for borrowing is even more concerning […]
Higher interest rates may have slowed Canadians from borrowing, but they’re embracing hope. Hope that rates will be cut and the debt they’re once again accumulating will go down in cost. Bank of Canada (BoC) data shows household credit jumped in February, and has shown some mild acceleration. This presents a few concerns for the […]
