Weekly Digest – 26 June 2024

Weekly Digest – 26 June 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Canada’s economy ‘set to turn a corner’

Canada’s economy appears to be positioned for a rebound after experiencing weakness last year, but consumer spending is expected to be impacted by higher borrowing costs, tighter immigration policy and a softer labour market, according to a report.

Trying to time the housing market after the rate cut? What experts advise

Borrowing costs are starting to drop after the Bank of Canada’s first interest rate cut of the cycle, spurring speculation from all corners of the housing market about how buyers and sellers will react.

Economists say BoC could cut interest rates again in July if inflation keeps cooling

Economists are forecasting inflation slowed further in May, which would be welcome progress for the Bank of Canada after it cut its key lending rate for the first time in four years. Tuesday’s report from Statistics Canada will offer the first inflation reading after the Bank of Canada delivered a quarter-percentage-point rate cut on June 5, bringing its benchmark rate to 4.75 per cent. Economists say the new data could set the stage for another cut in July.

The Bank of Canada’s growing list of worries

Rate cuts are coming, but can they help Canada’s economy avoid the many risks ahead? The Bank of Canada says progress is being made, but that risks to the forecast remain a concern.

Statistics Canada reports wholesale sales up 2.4% in April

Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 2.4 per cent to $83.3 billion in April. The overall increase came as sales increased in five of the seven subsectors.

Provinces want labour-market transfers cut from budget back

Recent federal budget cut $625 million in transfers used for skills training. The provincial and territorial labour-market ministers plan to lobby federal Minister of Employment and Workforce Development Randy Boissonnault to restore $625 million in federal labour-market transfers to the provinces and territories.

More incentives for unions to go on strikes with Bill C-58 passing in the Senate

The Canadian Federation of Independent Business (CFIB) is extremely disappointed by Monday’s Senate third reading vote to pass Bill C-58. By further limiting the use of replacement workers during strikes or lockout in federally regulated workplaces, Ottawa is giving large unions more power and incentives to go on strikes more frequently.

BoC official explains high bar for future quantitative easing

A senior Bank of Canada official has stated that the measures taken during the pandemic helped boost the economy, but the bar for using quantitative easing (QE) again will be very high.

Canadian business installment loans up 74% in a year, delinquencies rising

Canada’s businesses continue to juggle challenging economic conditions with the fragile state of their own finances, including high reliance on debt. Equifax Canada’s latest Business Credit Trends Report reveals a surge in new installment loans originated in the first quarter of 2024, likely due to businesses preparing for the deadline to repay Canada Emergency Business Account (CEBA) balances or lose the forgivable portion.

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