Skip to main content

Featured

5 Things to Know Today: BoC Decision Looms, TSX Sits Near Record Highs

  Saturday, July 11, 2026 Here's what Canadians need to know heading into the week, as markets brace for the Bank of Canada's rate decision and the CUSMA trade file keeps grinding along. 1. The Bank of Canada decides Wednesday, and a hold is all but locked in The Bank of Canada's next rate announcement lands July 15, and virtually every economist on Bay Street expects the overnight rate to stay parked at 2.25% — what would be a sixth straight pause. A stronger-than-expected June jobs report has taken away any urgency to cut, while cooling inflation and lingering trade uncertainty argue against a hike. Expect the accompanying statement to lean on familiar language: steady as she goes. 2. June's jobs report beat expectations, and the jobless rate ticked down Statistics Canada reported employers added roughly 18,000 jobs in June, ahead of forecasts and building on May's much larger 88,000-job gain. The unemployment rate slipped to 6.5%, back to where it stood in Januar...
Post a Comment
Read more

article

Labels

Effects on the Economy: Impact of Rising Interest Rates in Canada


Rising interest rates in Canada can have a significant impact on various aspects of the economy. Firstly, higher interest rates can lead to increased borrowing costs for businesses and individuals, making it more expensive to invest or make large purchases such as homes or vehicles. This can potentially slow down economic activity and reduce consumer spending, which is a key driver of growth.


 Additionally, rising interest rates can strengthen the Canadian dollar relative to other currencies, which can negatively affect export-oriented industries by making their products more expensive in foreign markets. Moreover, higher interest rates can attract foreign investors seeking higher returns on their investments, potentially leading to an inflow of foreign capital but also potentially making Canadian exports less competitive. Overall, while rising interest rates can help curb inflation and maintain the stability of the economy in the long run, their short-term impact may include slower economic growth, reduced consumer spending, and potential challenges for export-oriented sectors in Canada.






Labels:

Comments

Post a Comment