Vikram Barhat

3 weeks ago | morningstar.ca | Vikram Barhat

The report highlights the growing toll of US tariffs on the Canadian economy, with employers increasingly holding off on hiring or reducing headcounts while they navigate the ongoing uncertainty. Meanwhile, recent strength in Canada’s GDP presents a conflicting picture for the Bank of Canada’s complex rate-setting calculus. The Bank held its policy rate at 2.75% last Wednesday, its second pause in a row after aggressively lowering from a peak of 5.00% last summer.

3 weeks ago | morningstar.ca | Vikram Barhat

“We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs,” said the bank’s press release. Since it started its easing cycle last summer, the bank has delivered seven cuts, bringing the interest rate from its peak of 5.00% to its current 2.75%. It’s stood pat for its last two meetings.

3 weeks ago | morningstar.ca | Vikram Barhat

“We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs,” said the Bank’s press release. Since it started its easing cycle last summer, the Bank has delivered seven cuts, bringing the interest rate from its peak of 5.00% to its current 2.75%. It’s stood pat for its last two meetings.

3 weeks ago | morningstar.ca | Vikram Barhat

With a mix of tariff deals, deferrals, and discounts in play, Adatia says it’s tempting to believe calm is returning. But since Trump “doesn’t have a clear vision of exactly what he wants,” the road ahead may be rocky. “I caution that it’s a pause, not definitive,” Adatia says of the tariff suspension. “We saw evidence in Europe, where it was supposed to be a 10%-20% tariff, then went to 50%, and now it’s back to a pause. Nothing’s concrete.” Is the Worst Over for Stocks?

4 weeks ago | morningstar.ca | Vikram Barhat

Bouncing back from February’s 0.2% contraction, Canada’s March gross domestic product report showed that the economic acceleration was primarily driven by goods-producing industries including construction activity and mining, quarrying, and oil and gas extraction. On an annualized basis, the economy grew 2.2% in the first quarter of 2025, significantly outpacing the 1.8% Bank of Canada estimates and above the 2.1% in the fourth quarter of 2024.