Author: Robert Jessi

Good morning. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our quarterly Monetary Policy Report and today’s decision. Governing Council maintained the policy interest rate at 2.25%. We have three key messages. First, after stalling over the past year, economic growth looks to have resumed in Canada. While US trade policy continues to be a headwind, consumers have been resilient and businesses are adapting. Second, inflation in Canada is poised to ease gradually provided global oil prices decline from elevated levels. Third, uncertainty remains elevated. The conflict in the Middle East has re-escalated in recent…

 Big moves are becoming the norm in this market, and currency is no exception. Our Canadian dollar (CAD) has traded down to 70 cents on the dollar. This is only a penny or two away from the extreme lows of Covid (when everyone was hiding in USD/Treasuries) and Tariff Day (remember when tariffs were going to push Canada into a bone crushing recession?). Too extreme? Let’s bring it in.Our initial thoughts on this weakness was that is a Canada problem. Oil prices came down from $92/bbl to $70/bbl in June 2026, and we are still somewhat of a petro currency.…

SpaceX selloff an ominous sign as lockup expiry looms

By Erik Hertzberg (Bloomberg) — The Bank of Canada held interest rates steady for a sixth consecutive meeting as policymakers see the economy rebounding and oil price-driven inflation fading.  Officials led by Governor Tiff Macklem kept the policy rate at 2.25% on Wednesday, matching expectations of economists in a Bloomberg survey and traders in overnight swap markets. “After a year of weakness, Canada’s economy is showing signs of improvement,” the bank said in its monetary policy report. “Growth is expected to pick up, and inflation eases gradually from its recent peak. Uncertainty is still high.” The bank said in its…

Gold (XAU/USD) attracts fresh sellers during the Asian session on Thursday and drops back closer to the previous day’s swing low, around the $4,025 region in the last hour. Despite soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports, elevated crude oil prices keep the possibility of a US Federal Reserve (Fed) interest rate hike later this year firmly on the table. This offers some support to the US Dollar (USD) and drives flows away from the non-yielding bullion.The US Bureau of Labor Statistics (BLS) reported on Wednesday that the PPI unexpectedly fell 0.3% in June after…

USD The dollar is on the back foot this morning, with the near 100.8 after falling nearly half a percent on Tuesday. The move lower came largely in response to June CPI, which showed headline prices easing -0.4% MoM, a much sharper decline than the -0.1% anticipated by economists. That leaves the annual inflation rate at 3.5% YoY, down from 4.2% in May, while core eased to 2.6% YoY with a flat monthly print. As we noted in our reaction piece, though, Chair Warsh’s concurrent testimony leaned hawkish, stressing that a single favourable reading would not change the outlook, helping…

 Big moves are becoming the norm in this market, and currency is no exception. Our Canadian dollar (CAD) has traded down to 70 cents on the dollar. This is only a penny or two away from the extreme lows of Covid (when everyone was hiding in USD/Treasuries) and Tariff Day (remember when tariffs were going to push Canada into a bone crushing recession?). Too extreme? Let’s bring it in.Our initial thoughts on this weakness was that is a Canada problem. Oil prices came down from $92/bbl to $70/bbl in June 2026, and we are still somewhat of a petro currency.…

The outlook for Canadian growth is broadly unchanged. After a weaker-than-expected start to 2026, GDP growth is projected to be slightly stronger in 2027 and 2028. Although near-term inflation has been a bit higher than anticipated, the outlook for inflation is little changed.

Construction pushes ahead at a housing development in Milton, Ont., but elsewhere across the country developers are hitting roadblocks in the form of out-date-and inadequate infrastructure. (Credit: Peter Power/Postmedia News files) It’s Tuesday, July 14. Here are the top stories we’re following today. Housing projects are piling up across Canada as the pipes underneath can’t keep up Construction executives, municipal engineers and developers say aging water and wastewater systems are emerging as one of the country’s biggest constraints on housing construction, leaving approved projects to possibly sit idle for years while improvements are made. Read the story Prime Minister Mark…

Fortunately, building credit in Canada can be relatively straightforward. Many banks, including RBC, offer credit cards specifically designed for students and newcomers, making it easier to get approved and start establishing a credit history early. How can international students build credit in Canada? International students can start building credit by opening a credit card, setting up a cell phone or internet plan in their name, and paying bills on time. These activities may be reported to Canada’s two main credit bureaus, Equifax and TransUnion. Using a credit card responsibly is one of the fastest ways to establish credit. Paying your…