The Bank of Canada (BoC) recently announced its decision to maintain the overnight rate target at 1 ¾%– while the Bank Rate and deposit rate are 2% and 1 ½% respectively – resulting in no shortage of backlash. In its press release, the BoC cites the escalation of international trade conflict as a factor in the constricting of business investment, and thus, is a heavy blow to the global economic momentum that it had projected to be an influential growth factor in its Monetary Policy Report (MPR) back in July. Uniquely, the BoC remains the only … Continue Reading
Investors are struggling to price market uncertainties, with widely fluctuating market prices in both the United States and Canada. West Texas Intermediate, a U.S. crude benchmark, slid 2.9% during the first week of September, following a jump of more than 7% in August and has remained turbulent ever since. Meanwhile, Canadian energy stocks have failed to see any gains despite crude oil prices maintaining a nearly nine-week high. The discrepancy in the Canadian market and rapid fluctuations in the American market point to investors trying to make sense of recent changes and uncertainties, including:
1. Emerging market decline: The … Continue Reading
On May 31, 2018 the United States (U.S.) government announced that it would be imposing tariffs on a number of Canadian products, including steel and aluminum at a rate of 25% and 10% respectively. In response, the Canadian government imposed its own surtaxes of approximately C$16.6 billion on imports of steel, aluminum, and other products from the U.S. These countermeasures came into effect on July 1, 2018 and will remain in force until the U.S. repeals its tariffs on Canadian steel and aluminum.
At a market level, this escalating “trade war” between Canada and the U.S. has the potential … Continue Reading
Earlier this month, Canada and the European Union unveiled the Comprehensive Economic and Trade Agreement (CETA), a trade initiative designed to benefit Canadians — from individual workers and consumers to large scale corporations — by way of eliminating tariffs for Canadian goods entering the EU market and facilitating secure and preferential market access by Canadian service suppliers in the EU.
While CETA will not be in place until 2015, it will undoubtedly have widespread implications for most sectors of the Canadian economy. The EU is Canada’s second largest trading partner behind the United States, and it is believed that the … Continue Reading