economy
Top East African Economy Kenya Plans Carbon Exchange by 2027
Kenya is planning to launch a carbon credit exchange within the next 12 months, aiming to become a center for environmental finance in East Africa and monetize the region's natural resources.
Economist proposes changes to equalization payments to ease provincial tensions
An economist suggests linking federal equalization payments to provincial GDP to reduce regional friction and improve spending efficiency.
Canadian savings deteriorate as spending outpaces income: report
A new report by Boston Consulting Group reveals that a majority of Canadians, particularly those in the bottom 80% of income earners, are experiencing deteriorating savings as their spending significantly outpaces income growth. Households are covering the gap by drawing down savings, utilizing rising portfolio values, and accumulating more debt. The report highlights a shift in spending towards services rather than essentials, with purchases of durable goods like cars and appliances declining. This trend is creating financial strain, especially for lower and middle-income households, and suggests a fragmented consumer market for businesses.
Bank of Canada Holds Key Interest Rate at 2.5% Amid Cooling Inflation
The Bank of Canada kept its policy interest rate at 2.5% on Wednesday. Governor Tiff Macklem cited easing inflation but warned of lingering risks. Economists expect at most one more cut before year-end.
IPOs help fuel $376 billion in Canadian dealmaking during the first half of 2026
Canadian financial markets saw a significant increase in dealmaking in the first half of 2026, largely driven by a resurgence in Initial Public Offerings (IPOs). Total capital raised reached $376 billion, a 21.5% increase from the previous year, with major banks like RBC Capital Markets and TD Securities playing a crucial role. Despite a strong performance, the Canadian IPO market still lags behind the U.S. in terms of scale and breadth of participation across sectors like AI.
Bank of Canada publishes report on monetary policy framework consultations
The Bank of Canada has released a report detailing the feedback gathered from stakeholders and the public regarding its monetary policy framework consultations.
Inflation rose 3.2% as gas, food prices jump — with tomato prices up 45%
Canada's annual inflation rate climbed to 3.2% in May, driven by a significant increase in gas and food prices, notably a 45% jump in tomato prices.
U.S. Fed holds interest rate again in 1st move under new chair
The U.S. Federal Reserve has decided to maintain its benchmark interest rate at its current level. However, a significant portion of the central bank's policymakers indicated a potential openness to a rate increase later in the year.
Canada’s economy is weak, but ‘not clearly in recession,’ Macklem says
Bank of Canada Governor Tiff Macklem stated the Canadian economy is experiencing weakness but is not definitively in a recession, following the central bank's decision to hold interest rates steady.
Bank of Canada maintains the policy rate at 2¼%
The Bank of Canada has decided to maintain its key policy interest rate at 2.25%, keeping the Bank Rate at 2.5% and the deposit rate at 2.20%.
As consumers struggle, should the Bank of Canada hike, hold or cut rates?
Economists are divided on whether the Bank of Canada will hike, hold, or cut interest rates in the near future, with a slight lean towards a potential hike as inflation remains a concern.
How high immigration levels covered up underlying weakness in the economy
Some economists and critics suggest that Canada's high immigration levels in recent years have obscured underlying economic weaknesses.
Are we in a recession? ‘Be careful’ with indicators, says Bank of Canada
The Bank of Canada and some economists are advising caution when interpreting economic indicators, suggesting that recent GDP figures, while close to a technical recession, do not yet warrant a formal declaration.
Bank of Canada says households struggling, economy vulnerable to shocks
The Bank of Canada's latest report highlights significant struggles for Canadian households and warns of the economy's vulnerability to various potential shocks.
Bank of Canada joins BIS Project Agorá to test improvements in wholesale cross-border payments
The Bank of Canada is participating in the Bank for International Settlements' Project Agorá to investigate the potential of tokenization in enhancing wholesale cross-border payment systems.
Kevin Warsh sworn in as U.S. Fed chair facing inflation, policy pressures
Kevin Warsh has been sworn in as the new chair of the U.S. Federal Reserve, inheriting a role marked by significant inflation and policy pressures. President Trump has expressed his desire for Warsh to maintain full independence while also emphasizing the need to balance growth with inflation concerns.
Legislators squabble in Manitoba following reported rise in inflation
Manitoba is experiencing a significant rise in its inflation rate, tying for the highest among Canadian provinces, according to recent data from Statistics Canada. The increase is largely attributed to higher grocery prices and tax hikes, prompting debate among provincial legislators.
Motor oil prices are on the rise, experts say. The Strait of Hormuz is why
Motor oil prices are expected to increase due to geopolitical tensions in the Strait of Hormuz, impacting global crude oil supply.
Higher gas prices pushed inflation up to 2.8% in April, says StatCan
Consumer inflation in Canada rose to 2.8% in April, primarily due to an increase in gasoline prices, as reported by Statistics Canada.
Geopolitical tension now seen as top economic risk in Bank of Canada survey
A Bank of Canada survey reveals that geopolitical tensions are now perceived as the primary economic risk to Canada's productivity, surpassing trade conflicts.
Powell says he’ll stay at U.S. Fed after divided board holds interest rate
Jerome Powell has announced his intention to continue serving on the U.S. Federal Reserve's board, even after his term as chair concludes next month. This decision comes in the face of what he describes as 'unprecedented' legal challenges from the Trump administration.
Soaring oil prices might force ‘consecutive’ rate hikes, Macklem warns
Bank of Canada Governor Tiff Macklem suggested that rising oil prices, exacerbated by the Iran war, could necessitate multiple interest rate increases to combat inflation.
Fewer Canadian firms were anticipating a recession before Iran war began
A recent survey indicates that fewer Canadian businesses are anticipating a recession, with concerns about trade tensions and tariffs also decreasing.
Bank of Canada announces the appointment of two Deputy Governors
The Bank of Canada has appointed Marc-André Gosselin and Nicolas Vincent as Deputy Governors, with staggered start dates in May and August 2026.
Global financial systems must ‘come to grips’ with AI risks, BoC governor says
Bank of Canada Governor Tiff Macklem stated that global financial systems need to proactively address the risks associated with artificial intelligence (AI), emphasizing that the full implications of new AI advancements, such as Anthropic's Mythos, are still unknown.
Changes to Bank of Canada Governing Council
The Bank of Canada is seeing significant changes in its Governing Council with the departure of Deputy Governor Rhys Mendes and the retirement of Deputy Governor Sharon Kozicki.
Is the pain of the K-shape economy bleeding into the middle class?
New data suggests that the economic struggles previously concentrated in certain segments of the population, often described as a "K-shaped" recovery, are now increasingly affecting Canada's middle class, leading to higher debt levels.
U.S. Fed holds interest rates again as Iran war creates inflation worries
The U.S. Federal Reserve has maintained its interest rate at 3.6%, citing uncertainty over the economic implications of the Middle East conflict, particularly concerning inflation.
Bank of Canada holds interest rates as Iran war rattles global economies
The Bank of Canada maintained its key interest rate at 2.25%, with Governor Tiff Macklem monitoring the economic repercussions of the Iran conflict.
U.S. Federal Reserve holds interest rates as pressure from Trump mounts
The U.S. Federal Reserve has decided to maintain its key interest rate at approximately 3.6 per cent, pausing its cycle of rate cuts after implementing three reductions in the previous year. This decision comes amid mounting pressure from U.S. President Donald Trump.
Another rate hike may be looming and Canadians worry they can’t keep up
A new poll indicates that a significant majority of Canadians are concerned about their ability to manage increasing interest rates and the resulting debt-servicing costs.