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1 week ago | 
morningstar.ca | Vikram Barhat
However, it’s a different story for longer-term bonds. Unlike short-term bond yields, which tend to respond immediately to interest rate cuts, long-term yields are guided by expectations for future economic growth and inflation. Tariffs are inflationary, raising the costs of goods.
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1 week ago | 
morningstar.ca | Vikram Barhat
However, it’s a different story for longer-term bonds. Unlike short-term bond yields, which tend to respond immediately to interest rate cuts, long-term yields are guided by expectations for future economic growth and inflation. Tariffs are inflationary, raising the costs of goods.
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1 week ago | 
morningstar.ca | Vikram Barhat
Going into the meeting, the bond market pegged the central bank’s decision on interest rates as a coin toss between cutting and holding steady. Analysts pointed to the conflicting macroeconomic forces of the inflationary effects of tariffs and slowing economic growth.
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1 week ago | 
morningstar.ca | Vikram Barhat
Selon le dernier rapport de Statistique Canada, l’IPC a augmenté de 0,3 % sur une base mensuelle, ce qui représente une forte décélération par rapport à la hausse de 1,1 % enregistrée le mois précédent. Ce ralentissement est particulièrement significatif si l’on considère qu’il survient au cours du premier mois complet suivant l’allègement de la taxe de vente, qui a permis de contenir les prix d’une grande variété de biens au cours de son déploiement de deux mois.
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1 week ago | 
morningstar.ca | Vikram Barhat
Going into the meeting, the bond market pegged the central bank’s decision on interest rates as a coin toss between cutting and holding steady. Analysts pointed to the conflicting macroeconomic forces of the inflationary effects of tariffs and slowing economic growth.
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1 week ago | 
morningstar.ca | Vikram Barhat
According to the latest Statistics Canada report, the index rose 0.3% on a monthly basis, a sharp deceleration from 1.1% increase the previous month. The slowdown in inflation is particularly significant considering it comes during the first full month following the sales tax break that contained prices of a wide variety of goods during its two-month rollout period.
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1 week ago | 
morningstar.ca | Vikram Barhat
“I think the Bank of Canada likely leaves policy rates unchanged on Wednesday,” says Desjardins macro strategist Tiago Figueiredo. “With uncertainty around US trade policy greater than ever, Canadian central bankers will want to wait for more clarity before delivering additional rate cuts.” The central bank has already enacted a large amount of monetary easing since last summer, including two quarter-point cuts this year, bringing the rate down from 5.00% to 2.75%.
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1 week ago | 
morningstar.ca | Vikram Barhat
“The Canadian dollar strength has more to do with the US and the rest of the world than anything specific to Canada,” says Tom Nakamura, currency strategist and co-head of fixed income at AGF Investments. “With an escalating tariff war between China and the US, concerns have grown about the attractiveness of US assets in both the short term as well as the long run.”But while the Canadian dollar has gained in recent days, the outlook is less clear.
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2 weeks ago | 
morningstar.ca | Vikram Barhat
The common sentiment: Canadians should expect the value of the dollar to remain volatile as long as the trade wars continue. At the start of the year, the Canadian dollar traded at C$1.44 against the US dollar, dipping to a low of C$1.46 in early February. It has since rebounded, trading at C$1.42 as of last week, after Canada avoided reciprocal taxes from the US amid a widening global trade war.
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2 weeks ago | 
morningstar.ca | Vikram Barhat
The Canadian dollar has reacted by edging lower. Having ended last week at C$1.421 against the US dollar, the loonie fell on Monday to C$1.425 amid anxiety over the worsening economic outlook and impending European retaliatory tariffs on US goods. This could come while the markets are already reeling over the United States’ and China’s tit-for-tat levies announced last week. The US imposed 34% tariffs on Chinese goods on Wednesday.
