Canada’s headline inflation rate for May surprised to the upside on Tuesday. The 0.6% month-on-month print and 2.9% year-on-year increase came in above expectations of 0.3% m/m and 2.6% y/y, respectively. Both measures…
The Bank of Canada (BoC) cut interest rates from 5% to 4.75% in June and another rate cut in July would be warranted. Tight monetary policy is impacting the labor market. The unemployment rate (6.1%) has been on an uptrend…
According to BCA Research’s Global Investment Strategy service, aggressive fiscal stimulus and labor market flexibility contributed to the relative strength of the US consumer. However, adverse region-specific effects also…
A decade of Canadian equity underperformance has led to a historical discount relative to the S&P 500. Sector composition largely explains this underperformance. Banks and natural resources stocks are overrepresented in the…
The Bank of Canada reduced its policy rate by 25 basis points from 5% to 4.75% on Wednesday, in line with the market consensus. Headline inflation and the BoC’s preferred measures of core inflation are within the BoC’…
Canada’s headline CPI inflation decelerated in April from 2.9% y/y to 2.7% y/y. Notably, core median CPI eased from 2.9% y/y to a softer-than-anticipated 2.6% y/y and core trimmed-mean CPI ticked lower from 3.2% to 2.9…
According to BCA Research’s Global Investment Strategy service, the BoC should have sufficient evidence of Canadian disinflation to cut rates this summer. The market is pricing in a similar amount of rate cuts for the BoC…
Canadian equities have lagged their US counterparts for over a decade. Sector composition largely explains this underperformance. Banks and natural resources stocks are overrepresented in the TSX while the US stock market is…
The Canadian economy added 90.4 thousand jobs in April, up from a new loss of 2.2 thousand jobs in March. The April reading beat expectations of a more moderate increase of 20 thousand. The services sector entirely explains April…