DIRS.INFO The most relevant business & tech news

☆ US Army Black Hawk helicopter hit by snowmobile, rider sues government for $9.5 million, says report
▼ + stars: | 2024-03-09 | by ( Rebecca Rommen | ) www.businessinsider.com time to read: +3 min

A man is suing the government for $9.5 million after he crashed into a Black Hawk helicopter. AdvertisementA Massachusetts lawyer is suing the government for $9.5 million after he crashed into a Black Hawk helicopter while riding a snowmobile, The Associated Press reported. AdvertisementA Black Hawk helicopter. Michael CiagloThe Black Hawk helicopter is a multi-role aircraft designed to aid ground troops and armed escorts, according to the manufacturer Lockheed Martin's website. Black Hawk helicopters are perhaps most famous for their role in the mission that led to the killing of former Al-Qaeda leader Osama bin Laden in 2011.

Persons: Jeff Smith, —, Smith, Douglas Desjardins, there's, Michael Ciaglo, Osama bin Laden Organizations: US Army, Service, Hawk, Associated Press, Army, AP, Black, Federal, snowmobilers, Lockheed Martin's Locations: Massachusetts, Al

☆ See what celebrities wore to New York Fashion Week
▼ + stars: | 2024-02-13 | by ( Jacqui Palumbo | ) edition.cnn.com time to read: +4 min

CNN —New York Fashion Week is back, with celebrities seen sitting front row at shows across Manhattan and Brooklyn and arriving at private parties for luxury houses including Gucci and Yves Saint Laurent. Jamie McCarthy/Getty Images for Christian SirianoJodie Turner-Smith arrives at a private Gucci party. Gilbert Carrasquillo/GC Images/Getty ImagesJessica Chastain at a private Gucci party on Saturday. Dimitrios Kambouris/WireImage/Getty ImagesElliot Page arrives at a private Gucci party. Theo Wargo/Getty Images for NYFW: The ShowsIris Apatow at a private Gucci party on Saturday.

Persons: Gucci, Yves Saint Laurent, Tommy Hilfiger’s, Sofia Richie Grainge, Becky G, Willy Chavarria’s, Sam Smith, Julia Fox, Jessica Chastain, Jodie, Turner Smith, Demi Moore, Elliot Page, Nicola Peltz Beckham, Joe Biden’s, Ashley Biden, Kamala Harris ’, Ella Emhoff, Sophia Bush, J . Smith, Cameron, Philipps, Melanie Lynskey, Alicia Silverstone, Ashlee Simpson, Christian Siriano's, Jamie McCarthy, Christian, Jodie Turner, Smith, Gilbert Carrasquillo, Dascha Polanco, Willy Chavarria's, Roy Rochlin, Debbie Harry, Jason Mendez, Willy Chavarria, Amanda Lepore, Tommy Dorfman, Natasha Lyonne, Annabelle Dexter, Jones, Chanel, Dimitrios Kambouris, Camila Mendes, Ariana Greenblatt, Gilbert Flores, Storm Reid, Jackie Aina, Udo Salters, Cowan, Sarah Desjardins, Christian Cowan, Joel Kim Booster, Anna Wintour, Diane Kruger, Carolina Herrera, Charly Triballeau, Olivia Jade, Noah Beck, Louisa Jacobson, Misty Copeland, Jaimie Alexander, Jason Wu, Molly Ringwald, Helmut Lang, Jed Cullen, Dave Benett, Jeremy O, Harris, Stephanie Hsu, Phillip Lim, Arturo Holmes, Bella Thorne, Theo Wargo, Iris Apatow, Katie Holmes, Ulla Johnson, Manny Carabel, Jemima Kirke, Trullie Organizations: CNN, New York, Central, Brooklyn, Christian, Gucci, Bach, Getty, Harmonie Club, Carolina, Beauty Brooklyn Locations: Manhattan, Brooklyn, AFP, Zsela

☆ BoC to cut rates starting in Q2 2024, house prices seen flat in 2024: Reuters poll
▼ + stars: | 2023-11-30 | by ( Mumal Rathore | ) www.reuters.com time to read: +4 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. But Macklem also said "right now, it is not time to start thinking about cutting interest rates." Interest rate futures are pricing the first rate cut in March, earlier than the poll prediction. "Accompanying labour market weakness should put downward pressure on inflation and prompt the Bank of Canada to cut the policy rate around of the spring of 2024," they wrote. That was despite several government measures announced in the latest Fall Economic Statement to boost housing supply and help lenders dealing with homeowners at risk amid high interest rates.

Persons: Blair Gable, Macklem, It's, Avery Shenfeld, Robert Hogue, Sebastian Mintah, Mumal Rathore, Ross Finley, Tomasz Janowski Organizations: Bank of Canada, REUTERS, Reuters, BoC, U.S . Federal, Barclays, CIBC Capital Markets, of Canada, RBC, Desjardins, Moody's, Thomson Locations: Ottawa , Ontario, Canada, BENGALURU, stagnate

OTTAWA, Nov 30 (Reuters) - The Canadian economy unexpectedly contracted at an annualized rate of 1.1% in the third quarter, data showed on Thursday, avoiding a recession but showing growth stumbling ahead of next week's interest-rate decision. The economy avoided slipping into a technical recession - defined as two consecutive quarter-on-quarter contractions - because second-quarter GDP data was revised up to a 1.4% gain from an initial report of a 0.2% decline, Statistics Canada said. The BoC has remained on the sidelines since July after lifting its benchmark interest rate to a 22-year high of 5% to tame inflation. "The bottom line is that the economy is still sputtering along," said Royce Mendes, head of macro strategy at Desjardins Group. Real GDP most likely edged up 0.2% in October after a 0.1% gain in September, Statscan said.

Persons: Doug Porter, Royce Mendes, Bipan Rai, Statscan, Ismail Shakil, Steve Scherer, Dale Smith, Divya Rajagopal, Fergal Smith, Mark Porter Organizations: OTTAWA, Bank of Canada's, Statistics, BMO Capital Markets, Canadian, U.S ., BoC, Desjardins Group, Bank of Canada, Bank, CIBC Capital Markets, Thomson Locations: Canadian, Statistics Canada, North America, Ottawa, Toronto

OTTAWA, Nov 21 (Reuters) - Canada's annual inflation rate eased more than expected to 3.1% in October and core inflation measures edged down to their lowest levels in about two years, data showed on Tuesday, likely closing the door to further rate hikes. The Bank of Canada (BoC) targets 2% annual inflation. "If the door wasn't already shut to additional rate hikes, it now should be." The bank projects inflation to hover around 3.5% until mid-2024, before trickling down to its 2% target in late 2025. Dragging the annual inflation rate in October was a 7.8% drop in gasoline prices, which benefited from comparison with a price surge in October 2022.

Persons: Royce Mendes, Simon Harvey, Chrystia Freeland, Justin Trudeau's, Ismail Shakil, Steve Scherer, Dale Smith, Fergal Smith, Divya Rajagopal, Chizu Organizations: OTTAWA, Reuters, Statistics, Bank of Canada, BoC, CPI, Desjardins Group, Canadian, Justin Trudeau's Liberal, Thomson Locations: Statistics Canada, Europe, Canada, Ottawa, Toronto

A help wanted sign hangs in a bar window along Queen Street West in Toronto Ontario, Canada June 10, 2022. Canada added a net 17,500 jobs in October, Statistics Canada data showed. The softer-than-anticipated jobs report follows data out earlier this week indicating that the economy likely slipped into a shallow recession in the third quarter. "This will keep the Bank of Canada pinned more fully to the sidelines, although we still believe that rate relief remains a distant prospect." The services sector gained 10,000 jobs, led by information, culture and recreation as well as healthcare and social assistance.

Persons: Carlos Osorio, Royce Mendes, that's, Paul Smith, Doug Porter, Ismail Shakil, Steve Scherer, Fergal Smith, Nivedita Balu, Dale Smith, Louise Heavens, Andrea Ricci Organizations: Queen, West, REUTERS, Statistics, Reuters, Desjardins, Bank of Canada’s, The Bank of Canada, BoC, P, P Global Market Intelligence, CENTRAL BANK, Canadian, BMO Capital Markets, Bank of Canada, Thomson Locations: Toronto Ontario, Canada, OTTAWA, Statistics Canada, Ottawa, Toronto

Amid the economic turmoil of the pandemic, his government racked up Canada's highest ever deficit. Failing to curb spending now risks "the market dictating to you what you have to do with fiscal policy," said Doug Porter, chief economist at BMO Capital Markets. "I do think they have to trim the sails a bit," he added. "It's going to be easier to get inflation down if monetary and fiscal policy are rowing in the same direction," Macklem said. Fitch Ratings stripped Canada of its triple-A credit rating in June 2020, citing pandemic spending.

Persons: Justin Trudeau, Doug Porter, Chrystia Freeland, Katherine Cuplinskas, Trudeau, Macklem, Desjardins, Randall Bartlett, Simon Deeley, Robert Asselin, DBRS Morningstar, Julia Smith, Steve Scherer, Fergal Smith, Denny Thomas, Josie Kao Organizations: OTTAWA, Trudeau's Liberal, BMO Capital Markets, Finance, International Monetary Fund, of Canada's, BoC, UK, RBC Dominion Securities Inc, New, Business Council of Canada, Fitch, Moody's Investors, Canada, Thomson Locations: Canada, FES, Germany, High, Ottawa, Toronto

With the economy stumbling along slower than the Bank of Canada forecast just last week, analysts said there is no need to raise rates again from 5.0%, a 22-year high. July GDP was revised to being marginally negative from an initial report of zero growth, Statistics Canada said. This data reaffirms our view that the Bank of Canada is done raising rates for this cycle," Figueiredo said. The central bank has said its previous rate hikes are sinking in. The projected contraction in third-quarter annualized growth is far lower than the Bank of Canada (BoC) forecast last week.

Persons: Chris Helgren, Tiago Figueiredo, Figueiredo, Macklem, Benjamin Reitzes, Reitzes, Ismail Shakil, Steve Scherer, Dale Smith, Jonathan Oatis Organizations: Roberts Bank, REUTERS, Rights OTTAWA, Bank of Canada, Canadian, Reuters, Statistics, BoC, BMO Capital Markets, Thomson Locations: Delta, British Columbia, Canada, Canadian, Statistics Canada, Ottawa

☆ Bank of Canada to leave rates on hold as economy stalls, analysts say
▼ + stars: | 2023-10-23 | by ( Steve Scherer | ) www.reuters.com time to read: +2 min

Governor of the Bank of Canada Tiff Macklem walks outside the Bank of Canada building in Ottawa, Ontario, Canada June 22, 2020. REUTERS/Blair Gable/File Photo Acquire Licensing RightsOTTAWA, Oct 23 (Reuters) - The Bank of Canada (BoC) will leave interest rates on hold on Wednesday as the economy stalls, analysts said, though many see the central bank warning that future hikes are still possible with inflation hovering well above its 2% target. Weak growth and a modest easing of inflation "should keep the Bank of Canada on hold," he said. Earlier this month, BoC Governor Tiff Macklem said the economy was not heading for a "serious recession". Macklem "will need to sound sufficiently hawkish to retain current market pricing, which more or less has the Bank of Canada holding rates steady until 2025."

Persons: Blair Gable, Karl Schamotta, Macklem, Royce Mendes, Steve Scherer, Jonathan Oatis Organizations: Bank of Canada, REUTERS, Rights OTTAWA, BoC, Cambridge Global Payments, Desjardins Group, of Canada, Thomson Locations: Ottawa , Ontario, Canada

☆ BoC likely done raising rates, to cut by mid-2024 say economists: Reuters poll
▼ + stars: | 2023-10-20 | by ( Milounee Purohit | ) www.reuters.com time to read: +4 min

The risk of a revival in inflation, last measured at 3.8%, has led most to forecast now is not the time for the central bank to strongly signal they are done raising rates. Twenty-nine of 32 economists polled Oct. 13-20 expect no change to the central bank's 5.00% overnight rate (CABOCR=ECI), with the remaining three expecting a 25 basis point hike. While most are confident the central bank is done hiking, a significant minority of economists who answered an additional question, 8 of 18, said the risk of the BoC raising rates at least once more is "high". Still, a two-thirds majority, 20 of 30, see the BoC cutting its overnight rate at least once before end-June 2024. The distribution of where economists saw the overnight rate by end-June was split many ways.

Persons: Randall Bartlett, underscoring, Tony Stillo, Milounee Purohit, Maneesh Kumar, Ross Finley, Jonathan Oatis Organizations: Bank of Canada, BoC, Desjardins, U.S . Federal Reserve, Oxford Economics, Bank, Thomson Locations: BENGALURU, Canada

☆ Immigrants and students fueled Canada's population jump in 2023, StatsCan says
▼ + stars: | 2023-09-27 | by ( ) www.reuters.com time to read: +2 min

Statscan had already announced the population grew by 2.9% in the 12 months to July 1, 2023 but Wednesday's release provided more details. "Canada continued to lead G7 countries for population growth and was likely among the top 20 fastest growing countries in the world," Statscan said in a news release. As of July 1, 2023, an estimated 2,198,679 non-permanent residents lived in Canada, a 46% jump from July 1, 2022. "This represents the largest year-over-year increase in the population of non-permanent residents ... since comparable data are available (1971/1972), with the increase in work and study permits accounting for most of the change," said Statscan. "Near-record rates of population growth can also contribute to outsized employment growth, that could put upward pressure on consumer demand and ultimately drive further price increases," he said in a note.

Persons: Christinne, Statscan, Marc Desormeaux, Desjardins, David Ljunggren, David Gregorio Our Organizations: REUTERS, Rights, Statistics, Liberal, Thomson Locations: Montreal, Quebec, Canada, Statistics Canada, Canadian

☆ Enbridge C$4.6 bln equity sale raises hopes for Canada market revival
▼ + stars: | 2023-09-26 | by ( Maiya Keidan | ) www.reuters.com time to read: +3 min

"I think there is evidence out there that for the right transaction for the right reasons, investors will show up," said François Carrier, co-head of Desjardins Capital Markets. But not many dealmakers are expecting a rush of supply with an uncertain macroeconomic environment still keeping secondary equity markets volatile. The shares dropped well below their first-day high, potentially limiting a comeback in Canadian equity capital raisings and IPOs. "We do not have enough data to declare the IPO market open. Our own view is that we are still 12 to 18 months away from a robust IPO market," he added.

Persons: Dado Ruvic, Carrier, We're, we're, Enbridge's, Jeff Hershenfield, Stikeman Elliott, Stephen Pincus, Goodmans, John McKenzie, Neil Selfe, Maiya, Bernadette Baum Organizations: REUTERS, Rights, Dominion Energy, Desjardins Capital Markets, Arm Holdings, Capital Markets, TMX, Thomson Locations: IPOs, Canada, Unite States, Toronto, Klaviyo, raisings

Two of the three core inflation measures also rose. The annual rate, the highest since the 4.4% reported in April, is double the Bank of Canada's 2% target. "Underlying inflation is still well above the level that would be consistent with achieving our target of 2% CPI inflation," she said. Money markets raised bets for a rate hike in October after the data, seeing a 42% chance of an increase after the price figures compared with 23% before. However, another inflation report and a bevy of other data are due out before the Canadian central bank next meets on Oct 25 to set the key overnight rate.

Persons: Derek Holt, Holt, Sharon Kozicki, Jimmy Jean, Justin Trudeau's, Andrew Grantham, David Ljunggren, Steve Scherer, Dale Smith, Fergal Smith, Divya Rajogopal, Paul Simao, Mark Porter Organizations: Reuters, Statistics, Bank of Canada's, Scotiabank, Bank of, Bank of Canada, Canadian, Desjardins Group, CIBC Capital Markets, Tiff, Thomson Locations: OTTAWA, Statistics Canada, Canadian

Canada created 39,900 jobs, Statistics Canada said, compared with a median forecast for a gain of 15,000. The labor market has been resilient even as the Bank of Canada (BoC) raised its key overnight rate 10 times since March 2022 to cool the economy. Money markets see a 44% chance of another BoC rate hike by year-end, up from 36% before the data were published. "This report alone won't make the Bank of Canada regret holding rates steady earlier this week. Derek Holt, vice president of capital markets economics at Scotiabank, noted a gain of 49,500 people in self-employed jobs.

Persons: Carlos Osorio, Andrew Kelvin, Royce Mendes, Derek Holt, Dale Smith, Fergal Smith, Andrea Ricci, Nick Macfie Organizations: Queen, West, REUTERS, Rights, Statistics, Bank of Canada, BoC, TD Securities, Desjardins Group, Canadian, Scotiabank, Thomson Locations: Toronto Ontario, Canada, Statistics Canada, Canadian, Ottawa, Toronto

Bank of Canada Governor Tiff Macklem takes part in a news conference after announcing an interest rate decision in Ottawa, Ontario, Canada April 12, 2023. REUTERS/Blair Gable/File Photo Acquire Licensing RightsOTTAWA, Sept 6 (Reuters) - The Bank of Canada on Wednesday is expected to keep rates on hold at a 22-year high of 5% after the economy unexpectedly shrank in the second quarter, analysts said. While the economy turned negative in the second quarter, inflation has been stubborn, unexpectedly rising to 3.3% in July as core measures remained well above 3%. Canada's Liberal Prime Minister Justin Trudeau's support has sagged amid high inflation as his Conservative rival, Pierre Poilievre, hammered him for feeding inflation with government spending and driving up rates during a housing crisis. But core inflation measures are inching down slowly, and a wealth of data is due out before the bank next meets to discuss rates in October.

Persons: Blair Gable, Derek Holt, Justin Trudeau's, Pierre Poilievre, Tiago Figueiredo, Holt, Steve Scherer, Mark Porter Organizations: Canada, REUTERS, Rights, Bank of Canada, of Canada, Scotiabank, Canada's Liberal, Conservative, Bank of Canada's, Desjardins Group, Reuters, BoC, Thomson Locations: Ottawa , Ontario, Canada

Analysts polled by Reuters had forecast inflation would rise to 3.0% from the 27-month low of 2.8% recorded in June. Money markets increased bets for a quarter-percentage-point rate hike in September. They saw a 35% probability immediately after the release of the inflation data, up from 22% beforehand, and then settled back to a 31% chance. Not all economists thought the stronger-than-expected price data would tip the scales toward a hike as soon as its next meeting in September. The Bank of Canada, after its last rate hike in July, said it would study data closely before moving again.

Persons: Carlos Osorio, Statscan, Derek Holt, Tiago Figueiredo, Jules Boudreau, Ismail Shakil, Steve Scherer, Dale Smith, Paul Simao, Jonathan Oatis Organizations: REUTERS, OTTAWA, Reuters, Statistics, Bank of, Scotiabank, Canadian, Bank of Canada, Desjardins Group, Mackenzie Investments, Thomson Locations: Toronto , Ontario, Canada, Statistics Canada, Mackenzie, Ottawa

☆ Canada unexpectedly sheds jobs in July, central bank seen pausing hikes
▼ + stars: | 2023-08-04 | by ( Ismail Shakil | ) www.reuters.com time to read: +3 min

Money markets see a 28% chance of a rate hike in September, down slightly from 32% before the data. Money markets see a 60% chance of another rate hike by the end of the year, down from 80% before the data. "I think their (the Bank's) conclusion from this would be that it's probably not a bad idea to pause on the rate hike front," he said by phone. While headline figures indicated some slowness, the average hourly wage for permanent employees - a figure the Bank of Canada watches closely - rose 5.0% from July 2022. "The softer labor market data support our view that the Bank is unlikely to follow through with current market pricing by raising rates further," he said.

Persons: Chris Helgren, Doug Porter, Royce Mendes, Stephen Brown, Statscan, David Ljunggren, Dale Smith, Fergal Smith, Jonathan Oatis, Nick Zieminski Organizations: REUTERS, OTTAWA, Bank of Canada, Reuters, Statistics, The, BMO Capital Markets, U.S ., Desjardins, North, Capital Economics, Thomson Locations: Toronto , Ontario, Canada, Canadian, Statistics Canada, North America, Ottawa, Toronto

☆ Analysis: Is Canadian core inflation about to crack? July data could offer hope
▼ + stars: | 2023-07-25 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

The monthly increases for both measures have been 0.3% or less in seven of the last eight months. The BoC, which will release minutes from its July meeting on Wednesday, has said it doesn't want to tighten more than is needed. Canadians are particularly sensitive to higher borrowing costs after loading up on debt in recent years as house prices soared. The July inflation data is due for release on Aug. 15. Reporting by Fergal Smith; Editing by Denny Thomas and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Benjamin Reitzes, Reitzes, Royce Mendes, Mendes, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: TORONTO, Bank, Canada's, BoC, BMO Capital Markets, Reuters Graphics Reuters, Bank of Canada, Desjardins, Thomson Locations: Helpfully

OTTAWA, July 18 (Reuters) - Canada's annual inflation rate dropped more than expected to a 27-month low of 2.8% in June, data showed on Tuesday, led by lower energy prices while food and shelter cost increases persisted. Month-over-month, the consumer price index was up 0.1%, Statistics Canada said, which was also lower than the 0.3% forecast. "Inflation is definitely moving in the right direction, but we're seeing stickier and more persistent core measures," said Michael Greenberg, senior vice president and portfolio manager at Franklin Templeton Investment Solutions. The average of two of the Bank of Canada's (BoC) core measures of underlying inflation, CPI-median and CPI-trim, came in at 3.8% compared with 3.9% in May. "The Bank of Canada's preferred measures of core inflation, which exclude significant moves in individual categories, show that underlying price pressures remain sticky," said Royce Mendes, head of macro strategy at Desjardins Group.

Persons: stickier, Michael Greenberg, Royce Mendes, Mendes, We're, Jules Boudreau, Ismail Shakil, Steve Scherer, Fergal Smith, Nivedita Balu, Dale Smith, Will Dunham, Alexandra Hudson Organizations: OTTAWA, Reuters, Statistics, Bank of Canada's, Franklin Templeton Investment Solutions, Canada's, Desjardins Group, The Bank of Canada, Mackenzie Investments, Canadian, Alexandra Hudson Our, Thomson Locations: Statistics Canada, Mackenzie, China, Ottawa, Toronto

Unlike the U.S., where home buyers can snag a 30-year mortgage, Canadian borrowers must renew their mortgages every five years at the prevailing interest rates. MORTGAGE DELINQUENCIES LOWLatest data released during the quarterly earnings showed mortgage delinquencies for all banks were low. Of the big six banks in Canada, Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) do not offer mortgage extensions, meaning the payment owed by the consumer goes up for each hike the BoC announces. Bank of Montreal (BMO.TO), CIBC (CM.TO) and TD Bank (TD.TO) each allow for negative amortization as rates rise. So it is working counter to what the Bank of Canada is trying to accomplish," Briggs added.

Persons: Greg Taylor, Desjardins, Mike Rizvanovic, Rizvanovic, Darcy Briggs, Briggs, Nivedita Balu, Josie Kao, David Gregorio Our Organizations: TORONTO, Bank, Purpose Investments, Bank of Nova, National Bank of Canada, BoC, RBC, Scotiabank, National Bank, Bank of Montreal, CIBC, TD Bank, Desjardins . Royal Bank of Canada, BMO, Franklin Templeton, Bank of Canada, Thomson Locations: U.S, Canada, Bank of Nova Scotia, Franklin Templeton Canada, Toronto

☆ Bank of Canada expected to hike rates as economy outperforms
▼ + stars: | 2023-07-12 | by ( Steve Scherer | ) www.reuters.com time to read: +2 min

"We expect the Bank of Canada to raise its policy rate to 5.00% and leave the door open to more hikes this fall." Twenty of 24 economists surveyed by Reuters expect the central bank to lift rates by another quarter of a percentage point and then hold them there well into 2024. Money markets see more than a 70% chance of a rate hike on Wednesday, and are fully pricing in such a move by September. Canada added far more jobs than expected in June, according to data published on Friday. "And let's face it, inflation is still above the Bank of Canada's 2% target."

Persons: Royce Mendes, Tiago Figueiredo, Doug Porter, Porter, Steve Scherer, Fergal Smith, Paul Simao Organizations: OTTAWA, Bank of Canada, BoC, Bank of Canada's, Group, Reuters, BMO Capital Markets, Thomson Locations: Canadian, Canada

OTTAWA, July 7 (Reuters) - Canada's economy added far more jobs than expected in June, data showed on Friday, a result analysts said probably seals the deal for another Bank of Canada (BoC) interest rate hike next week. The unemployment rate in June increased for the second consecutive month and is now at its highest level since February 2022, though still below a pre-pandemic 12-month average, Statscan said. The June jobs report is the last major economic figure to be released before the BoC's rate announcement on Wednesday. Growth has remained resilient despite nine rate increases totaling 450 basis points since March of last year. The net jobs addition in June, the largest since January, were driven by full-time work.

Persons: Jobs, Statscan, Derek Holt, Royce Mendes, Ismail Shakil, Steve Scherer, Dale Smith, Emelia Sithole, Mark Porter Organizations: OTTAWA, Bank of Canada, BoC, Statistics, Scotiabank, Desjardins Group, Reuters, Canadian, Employment, Thomson Locations: Statistics Canada, Ottawa

OTTAWA, June 30 (Reuters) - Canada's economy regained momentum in May after stalling in April, Statistics Canada data showed on Friday, leaving the door open for the Bank of Canada to hike interest rates in July. The economy was unchanged in April from March, missing forecasts, in what economists said was the fallout from a federal civil servant strike in April. Canada's goods-producing sector expanded 0.1% in April, but were offset by a slight decline in the service-producing sector. Figueiredo expects the central bank to raise interest rate by another 0.25% in July. Money markets see a roughly 61% chance of the central bank hiking rates in July.

Persons: Statscan, it's, Doug Porter, Desjardins, Tiago Figueiredo, Figueiredo, Ismail Shakil, Nivedita Balu, Dale Smith, Jonathan Oatis, Philippa Fletcher Organizations: OTTAWA, Statistics, Bank of Canada, Reuters, BMO Capital Markets, Public Service Alliance of Canada, Toronto Stock, Canadian, Thomson Locations: Statistics Canada, Ottawa, Toronto

The central bank is worried that the Canadian economy is running too hot for inflation to return to its 2% target and that if it waits to act, inflation expectations could rise, making matters worse. The central bank lifted its benchmark rate to a 22-year high of 4.75% this month and is expected to tighten further in July or September. A hard landing for the economy, or a recession, could raise unemployment, something the BoC has been hoping to avoid. "I'm not going to be betting against interest rates and I'm not going to be betting against policy lags." The data has left analysts pushing back their forecasts of a slowdown to later in 2023 or in 2024 but accompanied by higher than anticipated interest rates.

Persons: Karl Schamotta, David Rosenberg, I'm, Royce Mendes, Fergal Smith, Steve Scherer, Denny Thomas, Stephen Coates Organizations: TORONTO, Bank, Bank of Canada's, BoC, Bank of Canada, Rosenberg Research, Desjardins, Thomson Locations: United States, Data, Toronto, Ottawa

Variable rate mortgages in Canada typically require borrowers to make regular payments in fixed amounts. WHAT IS THE EXTENT OF MORTGAGE AMORTIZATION EXTENSION? Both banks had no variable-rate mortgages with amortizations greater than 30 years prior to the start of rate hikes. If interest rates stay high over the next few years, as the central bank has warned, it raises questions about customers' ability to service bigger than anticipated debt at higher rates during renewals. The big banks said most customers are able to cope with higher interest rates as they had passed a rigorous stress test to handle higher interest rates.

Persons: Royce Mendes, Carolyn Rogers, OSFI, Nivedita Balu, Fergal Smith, Steve Scherer, Denny Thomas, Conor Humphries Organizations: TORONTO, Statistics Canada, Royal Bank of Canada, CIBC, Bank of Nova, National Bank, Bank of Canada, BoC, Thomson Locations: Canada, United States, Bank of Nova Scotia, amortization, Toronto, Ottawa

Search resuls for: "Desjardins"

25 mentions found