Latest news with #BankofCanada
Hamilton Spectator
6 hours ago
- Business
- Hamilton Spectator
Bank of Canada's next interest rate decision is on July 30. Here's what economists expect
There's not much expectation the Bank of Canada will make any changes to interest rates in the next rate announcement set for Wednesday, July 30. In addition to the lending rate announcement, a policy report is expected as well. The interest rate has remained at 2.75 per cent since March. It's a figure used as a base for mortgage and loan lenders to calculate their interest rate repayment levels. According to Statistics Canada's latest report, the inflation rate for June was 1.9 per cent — which is around the level Bank of Canada Governor Tiff Macklem hopes to keep it at. But economists are still keeping an eye on inflation, as tariffs imposed by the United States are anticipated to start playing a role on those. 'As Consumer Price Index inflation heats up and keeps the bank on pause, the bank will be watching inflation expectations closely,' BMO vice-president of economics Shelly Kaushik said in a news release . 'Tariffs continue to put pressure on input price inflation, which is expected to accelerate over the next 12 months.' 'Tariffs and related uncertainty, along with spillover effects on the Canadian and global economies, continue to have major impacts on businesses' outlooks,' the bank said in a July 21 news release . 'However, the worst-case scenarios that firms envisioned last quarter are now seen as less likely to occur.' Most businesses were bracing to see an impact, and for some it has happened, but for other companies, it hasn't materialized, the bank added. According to Kaushik, there's not much in the latest Canadian business and economic forecast to sway the bank to change its rates next week. But TD Economics predicts two more rate cuts could happen this year, though the exact timing is up in the air. 'The ongoing softness in the labour market should open the door for the BoC to cut interest rates two more times this year, despite the recent uptick in inflation,' TD said in a June news release . In previous announcements, Macklem has said the bank will be more cautious with its interest rate changes in the coming months. 'The Canadian economy is showing some resilience to tariffs,' Macklem said last month. 'Yes, consumption was softer in the first quarter. You can see the impact of tariffs on consumption. But despite a really big drop in consumer confidence, consumer spending did continue to grow in the first quarter, and business investment was actually a bit stronger than we expected.' Macklem noted there was a lot of uncertainty, and he would keep an eye on the public data and the impact of tariffs in the country. Visit to learn more about the upcoming announcement. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Reuters
15 hours ago
- Business
- Reuters
Sticker Shock Ahead: What Canadians Need to Know About Markets, Tariffs, and Inflation in 2025
TORONTO, Canada, July 22, 2025 (EZ Newswire) -- As the global economy enters a year of recalibration, Canadian investors and households are bracing for a volatile but navigable 2025. According to Kate Leaman, AvaTrade, opens new tab's chief market analyst, Canada's economy is expected to post modest gains this year, growth hovering around 1.8%, but that calm surface belies a more turbulent undercurrent: trade friction with the United States, creeping inflation, and a changing global investment landscape. A major flashpoint is the return of tariffs. In 2025, both Canada and the U.S. slapped 25% duties on a range of goods, opens new tab, from steel to everyday consumer products. While aimed at addressing trade imbalances, these tariffs have created a ripple effect that's beginning to show up where it matters most your grocery bill. According to forecasts, tariffs will impact nearly 9% of the consumer price basket tracked by Statistics Canada, with price hikes filtering through to households over the next 12 to 18 months. Tariffs and Your Wallet: The New Inflation Driver By mid-2025, Canada's inflation hovered around 2.3–2.5%, but that's set to change. Bank of Canada, opens new tab now predicts a temporary spike above 3% in 2026, largely driven by tariff-induced price increases. The impact will be most acute in non-energy consumer goods: groceries, household items, and apparel. For the average Canadian, that means $100 worth of groceries today could cost $103 or more within the year, small increments that add up across a family's monthly budget. This inflationary jolt comes at a time when consumer confidence is slowly recovering, bolstered by wage growth and easing interest rates. But as AvaTrade analysts point out, shoppers should prepare for 'several choppy quarters in the aisles,' as tariffs push costs higher before supply chains fully adjust. The long-term upside? A potential reshoring of production and more 'Made in Canada' goods, though these may not come cheap, at least initially. Market Strategy: Diversify and Stay Nimble Despite the friction, Canada's financial markets, opens new tab remain resilient. The TSX is expected to grow, opens new tab, though more slowly than in 2024, with double-digit earnings growth led by energy, materials, and financials. Infrastructure projects like LNG terminals and high commodity prices are fueling optimism in key sectors. But volatility remains a theme, and AvaTrade suggests Canadian investors diversify, across geographies, sectors, and asset classes to weather potential shocks. Meanwhile, export trends are likely to be erratic: a short-term surge in shipments as firms race to beat new tariffs, followed by potential declines if trade barriers persist. Canada's strategic pivot to the Indo-Pacific, however, offers hope for exporters seeking new markets beyond the U.S. The Bigger Picture: Resilient, But Tested The Canadian economy is not in crisis but it is at a crossroads. Tariffs, inflation, and geopolitical tensions will challenge both households and investors to adapt. For Canadians, 2025 is not the year to expect explosive growth but it is a year to plan smart, shop strategically, and watch global headlines closely. As AvaTrade's market outlook notes: Canada remains fundamentally sound, but navigating the months ahead will require patience, adaptability, and a clear-eyed view of risk. This analysis was written by Kate Leaman, chief market analyst at AvaTrade. About AvaTrade AvaTrade is a globally licensed and regulated online trading broker, committed to providing traders with a secure and transparent trading environment. Nearly half of AvaTrade's activity stems from partnerships with institutional trading partners. The company prides itself on offering competitive trading conditions, including both fixed and floating spreads, as well as real-time quotes and instant trade execution. AvaTrade supports a wide range of popular trading platforms across desktop and mobile, catering to traders of all levels. The multi-award-winning broker offers a diverse portfolio of CFD instruments, including precious metals, stocks, indices, ETFs, government bonds (from the US, Japan, and Europe), and vanilla options on Forex. For more information, visit opens new tab. Media Contact Avatrade Supportinfo@ ### SOURCE: AvaTrade Copyright 2025 EZ Newswire See release on EZ Newswire
Globe and Mail
19 hours ago
- Business
- Globe and Mail
Seven stocks with growing dividends that will benefit from rate cuts
What are we looking for? Canadian dividend-growing stocks that will benefit from future Bank of Canada interest rate cuts. The screen After holding its policy rate steady at 2.75 per cent in June, the Bank of Canada may be compelled to cut rates later this year. With inflation cooling and economic growth under threat from U.S. tariffs, some major banks such as Toronto-Dominion Bank (TD-T) are forecasting two rate cuts by year end. Falling rates tend to boost demand for income-generating assets, making this an opportune moment to revisit dividend stocks. Lower bond yields push investors toward equities that pay steady and growing dividends. Using FactSet's screening tool, I identified Canadian dividend growers with a proven track record by applying the following criteria: The seven companies that passed were ranked by their dividend yield. What we found CT Real Estate Investment Trust (CRT-UN-T), a Canadian REIT with a portfolio of essential properties that includes Canadian Tire, ranked first on our screen with a 6-per-cent dividend yield and a conservative payout ratio of 49.6 per cent. Its properties maintain a strong occupancy rate above 99 per cent, adding a layer of predictability to its robust cash flows. Recent financing moves, including a $200‑million debenture offering, help support further development initiatives. With long-term leases, minimal tenant turnover risk and rates poised to drop, CT REIT is well positioned as a dependable income name in a lower-rate environment. Investors should stay tuned for further updates on CT REIT's earnings call on Aug. 6. Cogeco Communications Inc. (CCA-T), a telecom and broadband provider that operates across Canada and the United States, offers a 5.6-per-cent dividend yield and low payout ratio of 43.4 per cent. Despite reporting a recent 2.7-per-cent decline in quarterly revenues year-over-year, the company delivered a 63-per-cent surge in free cash flow driven by lower capital expenditures and restructuring costs. That said, Cogeco's core business is cable, which is in a long-term decline. It's a steady, income-focused name that may appeal more to conservative investors in a falling-rate environment. The information in this article is not investment advice. The author assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained above. Arjun Deiva, CFA, is an MBA Candidate at the University of California, Berkeley, Haas School of Business.
Yahoo
a day ago
- Business
- Yahoo
TSX futures edge lower as trade anxiety weighs
(Reuters) -Futures tied to Canada's benchmark index nudged lower on Tuesday as market mood soured over the fading prospects of a U.S.-EU trade deal, while investors tracked corporate earnings to assess the impact of President Donald Trump's tariffs on businesses. Futures on the S&P/TSX index were down 0.2% at 1,622.80 points by 06:43 a.m. ET (1043 GMT). The main Canadian stock index closed flat on Monday. Trade negotiations appeared shaky after EU diplomats said the 27-nation bloc was considering broader counter-measures against Washington. Prospects for an interim trade deal between India and the U.S. have also dimmed, according to Indian government sources. However, U.S. Treasury Secretary Scott Bessent said on Monday the Trump administration is more concerned with the quality of trade agreements than their timing. Meanwhile, the Bank of Canada said in a survey Canadian businesses see less chance of a worst-case tariff scenario but remain cautious, while keeping hiring and investment in check. In commodities, oil prices declined and gold prices retreated from a five-week high. Copper prices drifted higher. In corporate news, Alimentation Couche-Tard said on Monday it was resuming its share repurchase program days after the Circle K-parent scrapped a $46-billion attempt to buy Japan's Seven & I. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report [.TO] Canadian dollar and bonds report [CAD/] [CA/] Reuters global stocks poll for Canada Canadian markets directory Sign in to access your portfolio
Mint
2 days ago
- Business
- Mint
Ontario Doubles Down on ‘Buy Canada' Message as Angry Residents Boycott US
(Bloomberg) -- Ontario Premier Doug Ford renewed a call to buy 'Canadian-made everything' to heap pressure on the US to negotiate a trade deal and lift tariffs. Ford, who leads Canada's biggest province and is hosting a meeting of premiers this week, said the country should lean into its status as America's biggest customer. Prime Minister Mark Carney will make an appearance at the conference on Tuesday for a huddle with the provincial leaders. Carney is sending Dominic LeBlanc, the minister responsible for Canada-US trade, to Washington this week to negotiate with US President Donald Trump's administration, which has threatened a 35% tariff on some Canadian goods if there's no deal by Trump's Aug. 1 deadline. But the president and his officials have sent mixed signals about whether they want to sign agreements or simply proceed with unilateral tariff rates on trading partners. 'We're encouraging all provinces and territories: start buying Canadian-made vehicles, start buying Canadian-made everything — that will hurt more than anything at all,' Ford told reporters on Monday as he arrived at Deerhurst Resort near Huntsville, a picturesque town at the heart of Ontario's Muskoka region. Canadians say they're ramping up their boycott of US travel and products in response to the tariffs, according to the Bank of Canada's quarterly survey of households released Monday. About 55% of respondents said they're spending less on vacations to US destinations, and roughly 63% said they're pulling back on purchases of American goods. 'We're their number one customer. We buy more products from the US than Japan, China, Korea, the UK and France combined. So we are an economic powerhouse and we don't have to take a back seat to anyone,' he said, adding he wants his province to begin making products such as steel beams used in construction and aluminum cans for soda and beer. Trump hiked tariffs on foreign steel and aluminum imports to 50% in June. Canada's steel industry has already cut jobs and seen shipments slashed. Carney's government announced a plan last week to curb imports of foreign steel to help domestic producers — though one influential steel executive said it doesn't go nearly far enough. Ford's government pledged C$1.3 billion ($950 million) in May to help manufacturers by beefing up a tax credit for Ontario-made products. The government says about 830,000 people in the province work in manufacturing, which represents about 10% of jobs. Canada's premiers have largely struck a united front in the face of Trump's trade war, and their summer retreat is set to be dominated by discussions on how to increase trade between the provinces and advance major infrastructure projects, such as ports, to bolster the country's economic independence. Carney and some provincial leaders appeared resigned to at least some level of tariffs on Canadian shipments to the US, despite the existing trade accord that Trump signed in his first term that largely allows tariff-free trade between the US, Mexico and Canada. The prime minister said last week there's little evidence Trump will cut a deal that completely drops tariffs. Arriving at the resort on Monday, Alberta Premier Danielle Smith said she hopes sector-specific tariffs will be minimized as much as possible, while Quebec's Francois Legault said it's too soon to say whether it's inevitable that some tariffs remain. 'We'll see what we can get on August 1st. Of course, the ideal situation would be no tariffs,' Legault told reporters. Whatever the agreement is, he said, 'we need to have assurance that we'll keep this agreement for three, five years. We need to have an economy where the companies know what's happening in six months and 12 months from now.' More stories like this are available on
