Economics

Why the Bank of Canada could be among the first to raise interest rates

The head of currencies at one of the world’s largest banks is partially responsible for the Canadian dollar’s appreciation over the past few months. Paris-based BNP Paribas SA’s currency portfolio is “overweight” loonies and Momtchil Pojarliev is advising the bank’s clients to do the same. He reckons the Canadian dollar is undervalued since the petro currency’s price hasn’t fully adjusted to the likelihood of stronger oil prices as the global economy recovers from the pandemic. Pojarliev also thinks the Bank of

Bank CEOs say economic rebound is coming, but short term looking ‘not as good’

TORONTO — The leaders of Canada’s top banks believe an economic rebound is on the horizon, but say the short-term looks difficult and spending won’t truly pick up until the back half of 2021 or even 2022. The chief executives of the country’s most prominent banks think Canada is benefiting from generous government relief packages that reduced delinquencies and insolvencies and the arrival of several promising COVID-19 vaccines. However, they say the coming weeks don’t look pretty because growing numbers of

‘Confusion’: Airlines slam new coronavirus test rules for travelers returning to Canada

Airlines say a slew of questions remain about the federal government’s decision to require passengers returning to Canada to show negative results on COVID-19 tests taken abroad. Transport Minister Marc Garneau announced Thursday that air travellers overseas will have to present proof of a negative molecular test — known as a PCR test, conducted with a nasal swab — that was taken within 72 hours of departure, unless the testing is unavailable in that country. National Airlines Council of Canada chief executive Mike

60% of Canadians worried about inflation in 2021: CIBC

A majority of Canadians are worried about inflation as the calendar turns to 2021, according to a new survey released Tuesday by CIBC. The study found that 60 per cent of Canadians listed inflation and the rising costs of goods as their greatest financial concern over the course of the next year. “Canadians have faced so many challenges this year, it’s understandable they are concerned about the economy in 2021,” said Carissa Lucreziano, vice president of financial and investment advice at CIBC, who authored the

Warren Buffett: We’re in an Economic War Right Now

Warren Buffett has been a stock market investor for almost eight decades — much longer than most current investors have been alive. The Harvard Business School reject-turned-billionaire-investor has been a beacon of inspiration for investors throughout his prolific career. The Oracle of Omaha has continued to steer his conglomerate, Berkshire Hathaway, through the pandemic. He recently shared some words of wisdom regarding the current financial circumstances and how the American government should step up to protect small businesses in the country due to

Canadian food prices to outpace inflation in 2021: report

As supermarkets spend more in the shift to online shopping, the costs will likely be passed on to consumers The average Canadian family will spend $695 more on groceries in 2021, according to an annual food price report, the highest increase researchers have seen to date. Last year’s report forecast a two-to-four per cent increase, and predicted the average Canadian family would spend up to $12,667 on food. This year’s report predicts that amount to jump to $13,907 in 2021. Bakery,

‘We haven’t seen anything like this before’: pandemic boosts Canadian real estate

The Canadian real estate market is hot. And the heat is spreading far beyond big cities. Phil Soper, president and CEO of Royal Lepage, says the coronavirus pandemic is part of the reason. “Real estate is one of those sectors that is actually seeing what I call a ‘COVID catalyst,’ maybe the three P’s of the pandemic: puppies, Peloton and property.” Soper says home prices are up about 10 per cent this year — double the long-term average. A new report from the

Average new mortgage tops $300,000 for first time as consumer debt in Canada hits $2 trillion

About 12% of new credit taken by Canadians already deferring payment on existing debt Consumer debt in Canada rose 3.8 per cent in the third quarter to $2.041 trillion, driven by the surging housing market and new auto loans, Equifax Canada’s latest report reveals. Mortgage balances were up 6.6% from the year before and the average new mortgage loan rose 8.6% to exceed $300,000 for the first time. “Homebuyers are largely the reason why we’ve crossed over the $2 trillion threshold,”

Canada’s annual inflation rate accelerates to 0.7% in October

OTTAWA (Reuters) – Canada’s annual inflation rate unexpectedly accelerated to 0.7% in October, up from a year-over-year increase of 0.5% in September, mainly on higher food prices, Statistics Canada said on Wednesday. The result beat analysts’ estimates of an annual 0.4% increase in October. Excluding gasoline, prices rose 1.0% in October from a year earlier, matching September. “The headline data was a bit firmer than expected. But the way the market’s trading the data these days, it’s a bit more attuned

Home sales slowed in October but average price up 15% in past year, CREA says

Busiest October ever for home sales The average price of a Canadian resale home has risen by more than 15 per cent in the year up to October, the Canadian Real Estate Association said Monday. The group that represents more than 130,000 real estate agents across Canada said that last month was the busiest October ever for home sales, continuing a trend that started in May after COVID-19 lockdowns in March and April put the market into a deep freeze. While sales