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OTTAWA, Nov 23 (Reuters) - Inflation in Canada remains too strong, and higher interest rates will be needed to cool the overheating economy, Bank of Canada Governor Tiff Macklem said in testimony at the House of Commons on Wednesday. "Inflation has come down in recent months, but we have yet to see a generalized decline in price pressures," Macklem said. The Bank of Canada raised rates by 50 basis points last month, lifting the policy rate to 3.75%, the highest since 4% seen in January 2008. Conservative lawmakers pressed Macklem to explain what the bank should have done differently to avoid the spike in inflation. Macklem reiterated that "with hindsight", the bank would have started tightening monetary policy sooner, adding the bank would review how monetary tools have worked during this period.

OTTAWA, Nov 23 (Reuters) - Canadian inflation remains high and broad based and more interest-rate increases will be needed to cool the overheating economy, Bank of Canada Governor Tiff Macklem said in testimony at the House of Commons on Wednesday. "Inflation has come down in recent months, but we have yet to see a generalized decline in price pressures," Macklem said. After a strong job gain report for October, Canada's annual inflation rate held steady that same month at 6.9%, still far above the central bank's 2% target, while core inflation measures were mixed, data showed last week. The Bank of Canada raised rates by 50 basis points last month to fight inflation, lifting the policy rate to 3.75%, the highest since 4% seen in January 2008. Money markets have fully discounted a further 25 basis points of tightening by the Bank of Canada at its next policy decision on Dec. 7 and see a 20% chance of a larger move of 50 basis points.

The Bank of Canada raised rates by 50 basis points last month to fight high inflation, lifting the policy rate to 3.75%, the highest since the 4% level seen in January 2008. Rogers said the bank was monitoring how a combination of high home prices and high household debt - both longstanding economic vulnerabilities in Canada - could affect the stability of the financial system. After a blowout job gain report for October, Canada's annual inflation rate held steady that same month at 6.9%, matching analyst forecasts, while core inflation measures were mixed, data showed last week. Once fixed-rate mortgages hit the trigger point, lenders can ask them to pay more. Some 50% of those who have variable-rate mortgages, or about 13% of all Canadian mortgages, have already seen their payments reach the trigger point, the paper said.

In a surprise move, the Canadian government said earlier this month that it had decided to cease issuance of real return bonds (RRBs), citing low demand. That makes them an expensive form of financing for the government, but cost should not be the only consideration, investors say. The median allocation by defined benefit pension plans, a major category, to RRBs was 5.2% in 2021, data covering members of the Pension Investment Association of Canada (PIAC) shows. U.S. Treasury Inflation-Protected Securities (TIPS) could act as a proxy but are not an exact hedge against Canadian inflation. Breakeven rates are the difference between yields on nominal and real return bonds.

☆ TSX falls as commodity stocks weigh
▼ + stars: | 2022-11-17 | by ( Johann M Cherian | ) www.reuters.com time to read: +2 min

ET (1522 GMT), the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) was down 130.67 points, or 0.65%, at 19,827.29, extending losses from the previous session. "I think they're still on track for another hike," said Greg Taylor, portfolio manager at Purpose Investments. IRPR#0BOCWATCHAmong stocks, TC Energy (TRP.TO) said that the weather-related issues that prompted it to halt deliveries through its Keystone oil pipeline have been resolved. Restaurant Brands International (QSR.TO) rose 1.3% after it said that its coffee chain brand Tim Hortons had forged a two-year partnership with Alibaba Group's grocery chain. Reporting by Johann M Cherian in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ TSX dips as lower oil prices pressure energy shares
▼ + stars: | 2022-11-16 | by ( Fergal Smith | Simon Jessop | ) www.reuters.com time to read: +1 min

SummarySummary Companies TSX ends down 36.82 points, or 0.2%, at 19,957.96Energy falls 2.3%; oil settles 1.5% lowerMaterials sector loses 1.3%Restaurant Brands gains 7%TORONTO, Nov 16 (Reuters) - Canada's main stock index fell on Wednesday as lower oil prices weighed on energy shares but gains for consumer-related stocks helped limit the index's decline. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended down 36.82 points, or 0.2%, at 19,957.96. The Toronto market's energy sector fell 2.3% as oil prices settled 1.5% lower at $85.59 a barrel concerns over rising COVID-19 cases in China. The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3%, while technology ended 0.7% lower. Shares of Restaurant Brands International Inc (QSR.TO) ended 7% higher, helping drive the consumer discretionary sector to a 1.3% gain.

OTTAWA, Nov 16 (Reuters) - Canada's Prime Minister Justin Trudeau is coming under pressure from populist conservative rivals as the country veers toward a possible recession, with provinces vowing to oppose some of his Liberal government's key policies. New federal Conservative Party leader Pierre Poilievre is leading the charge, blaming Trudeau for skyrocketing inflation and laying responsibility for a housing shortage on "gatekeepers" in Ottawa. Both Alberta and Saskatchewan have lost court bids to overturn federal carbon pricing already. Alberta, Saskatchewan and other conservative-led provinces also oppose an assault-rifle buyback the Trudeau government is promising for next year. ECONOMIC HEADWINDSQuebec is a prime example of historical tension between Ottawa and the provinces.

☆ Canada annual inflation rate remains at 6.9% in October on gasoline and mortgage interest
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +1 min

Nov 16 (Reuters) - Canada's annual inflation rate held at 6.9% in October, largely on higher gasoline prices and mortgage interest, Statistics Canada said on Wednesday. Analysts polled by Reuters had expected the annual rate to remain at 6.9% in October from September. Percent changesMonth-on-month Year-on-yearOct Sep Oct SepCPI - all items +0.7 +0.1 +6.9 +6.9CPI - common n/a n/a +6.2 +6.2CPI - median n/a n/a +4.8 +4.7CPI - trim n/a n/a +5.3 +5.2Bank of Canada core +0.4 +0.4 +5.8 +6.0All items ex food/energy +0.3 +0.3 +5.3 +5.4Goods +1.2 -0.1 +8.4 +8.2Services +0.2 +0.3 +5.4 +5.6Energy +6.2 -4.4 +16.2 +14.0Seasonally adjusted +0.6 +0.4 n/a n/aCore CPI, SA +0.2 +0.4 n/a n/aNOTE: Analysts in a Reuters survey had on average forecast October CPI to be 6.9% annualized, and to be up 0.7% on the month. CPI Core was expected to be 6.0%. (Reporting by Dale Smith; Editing by Julie Gordon)((julie.gordon@tr.com))Keywords: CANADA ECONOMY/INFLATIONOur Standards: The Thomson Reuters Trust Principles.

☆ TSX rises as investors cheer U.S. inflation data
▼ + stars: | 2022-11-15 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) ended up 72.97 points, or 0.4%, at 19,994.78. "It is a growing sense that the Fed could start to slow the pace of interest rate hikes." Canadian inflation data for October, due on Wednesday, could help guide expectations for further tightening from the central bank. Halfway into November, the TSX looked set for its second straight month of gains as investors welcomed signs of decade-high inflation cooling. Reporting by Fergal Smith; Additional reporting by Johann M Cherian in Bengaluru; Editing by Alistair BellOur Standards: The Thomson Reuters Trust Principles.

☆ High interest rates bring winter gloom to Canada's housing market
▼ + stars: | 2022-11-15 | by ( Julie Gordon | Megan Rowling | ) www.reuters.com time to read: +4 min

[1/2] A for sale sign is displayed outside a home in Toronto, Ontario in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File PhotoOTTAWA, Nov 15 (Reuters) - Canada's housing market has gone cold, with buyers sidelined by soaring borrowing costs and sellers holding off listing in hopes of a spring rally, while higher interest rates mean prices need to fall more before any rebound materializes, experts say. "We do have quite a bit of fundamental demand still out there ... but the market just can't clear at current prices because of where interest rates have gone," said Robert Kavcic, senior economist at BMO Capital Markets. Variable rate mortgages - home loans in which the interest rate fluctuates based on market conditions - have more than tripled since March, with strict stress tests making qualification even tougher. "If investors aren't interested in buying condos, the whole market starts to slow down," he said.

☆ Lower-income Canadians to be hit harder by economic slowdown- BoC's Macklem
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: 1 min

OTTAWA, Nov 14 (Reuters) - Lower-income Canadians will be disproportionately affected by the slowdown in economic activity that is needed to rebalance supply and demand to ease inflationary pressures, Bank of Canada Governor Tiff Macklem said on Monday. "Slowing economic growth will disproportionately affect our most vulnerable households," he said in opening remarks at the Conference on Diversity, Equity and Inclusion in Economics, Finance and Central Banking. "But once we rebalance demand and supply, growth will pick up, our economy will grow solidly, and the benefits of low and predictable inflation will be restored," he added. Reporting by Steve Scherer and Julie Gordon in OttawaOur Standards: The Thomson Reuters Trust Principles.

☆ Canada's Ontario to extend gas, fuel tax cut for a year
▼ + stars: | 2022-11-13 | by ( ) www.reuters.com time to read: +1 min

TORONTO, Nov 13 (Reuters) - The Ontario government said on Sunday it will extend a fuel and gas tax cut first introduced last spring by another year to help residents cope with high inflation and economic uncertainty. The initial six-month cut went into effect in July and legislation to extend it to December 2023 will be introduced on Monday in the government's fall economic update. Some forecasters expect Canada's economy to dip into recession next year along with a downturn in global activity. The Bank of Canada has raised interest rates aggressively this year to tackle persistent inflation, which has eased slightly from a peak of 8.1%. Writing by Amran Abocar Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.

In October, the economy added a net 108,300 jobs, and wages growth climbed to 5.5%, even as the economy began to stall. Up until a few months ago, Kriska's 1,200 employees were too few to keep up with demand, Seymour said. Dennis Darby, who heads Canadian Manufacturers and Exporters business lobby, says there are still some 80,000 vacancies in manufacturing. Reuters GraphicsONE MILLION JOBSCanada has nearly a million open jobs and just over a million unemployed people. As global supply chain bottlenecks dissipate, labor demand will rebound in sectors that have a backlog of orders due to forced production cuts.

☆ Morning Bid: Consumer inflation, crypto deflation
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +5 min

Annual consumer price rises are expected to have eased back a touch last month to 8.0%, the lowest since February, with core inflation rates ticking lower to 6.5%. Falling used car prices, one aggravator of inflation indices over the past year, will be watched closely - as will the relative calm in oil prices. Minneapolis Fed President Neel Kashkari said it's "entirely premature" to discuss any pivot away from the Fed's current policy course. Broader markets were steady to negative around the world, mostly in a holding pattern ahead of the inflation report. The United States and China also laid out markers this week ahead of an expected meeting between their presidents at the summit.

☆ Bank of Canada: labor market can be cooled without jobless surge
▼ + stars: | 2022-11-10 | by ( Shariq Khan | ) www.reuters.com time to read: +1 min

OTTAWA, Nov 10 (Reuters) - Canada's red-hot labor market can weather an economic slump without seeing a major surge in unemployment, the central bank said on Thursday, ahead of another expected interest rate increase. The bank forecasts growth will stall through the middle of next year. Tightening monetary policy to combat inflation would push up the jobless rate, he added. "But because the labor market is so hot and we have an exceptionally high number of vacant jobs, there is scope to cool the labor market without causing the kind of large surge in unemployment that we have typically experienced in recessions," he said. (Reporting by Steve Scherer, editing by David Ljunggren)((Reuters Ottawa bureau, +1 647 480 7921; david.ljunggren@tr.com))Keywords: CANADA CENBANK/Our Standards: The Thomson Reuters Trust Principles.

☆ Canadian dollar dips as investors weigh U.S. midterm vote
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +2 min

Summary Canadian dollar dips 0.1% against the greenbackLoonie trades in a range of 1.3414 to 1.3466Price of U.S. oil falls 0.5%Canadian bond yields trade mixed across curveTORONTO, Nov 9 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday, pulling back from a seven-week high, as oil prices fell and investors awaited the results of the closely watched U.S. midterm elections. Global equity markets (.WORLD) dipped and the U.S. dollar (.DXY) rose against a basket of major currencies as control of the U.S. Congress and Democratic President Joe Biden's agenda was unclear after the midterm vote. U.S. crude prices were down 0.5% at $88.45 a barrel, while the Canadian dollar weakened 0.1% to 1.3440 to the greenback, or 74.40 U.S. cents, after trading in a range of 1.3414 to 1.3466. BoC Governor Tiff Macklem is due on Thursday to give a speech on the evolution of the Canadian labour market. Canadian government bond yields were mixed across the curve, with the 10-year up half a basis point at 3.484%.

☆ Canadian dollar slides as crypto selloff spooks investors
▼ + stars: | 2022-11-09 | by ( Fergal Smith | Rocky Swift | ) www.reuters.com time to read: +2 min

The loonie weakened 0.7% to 1.3520 per greenback, or 73.96 U.S. cents, after trading in a range of 1.3412 to 1.3541. Investors fretted about the financial health of major cryptocurrency exchange FTX, with some questioning whether a rescue deal from bigger rival Binance would materialize. Investors were shifting focus to U.S. inflation data on Thursday for clues on the path of future interest rate hikes by the Federal Reserve. Its governor, Tiff Macklem, is due on Thursday to give a speech on the evolution of the Canadian labour market. Canadian government bond yields eased across a flatter curve, with the 10-year down 5.8 basis points at 3.421%.

☆ The Fed and other central banks could deliver a 'Santa Pause' rally for global stocks this year as they dial back the size of rate hikes, Schwab says
▼ + stars: | 2022-11-08 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

A "Santa Pause" rally for stocks may be taking shape as central banks signal a step-down in rate hikes, Charles Schwab said. The Fed and the BoE are among those indicating they're considering less aggressive rate hikes in the future. The Federal Reserve is among the central banks over the past week that has indicated a slower pace of rate increases. BoE's comment came as it kicked up its benchmark rate by 75 basis points, the largest increase in 33 years. The Bank of Canada last month unexpectedly raised its overnight rate by 50 basis points instead of an anticipated 75 basis points.

☆ Canada's Ritchie Bros to buy salvage vehicle platform IAA in $7.3 bln deal
▼ + stars: | 2022-11-07 | by ( Kannaki Deka | ) www.reuters.com time to read: +2 min

Nov 7 (Reuters) - Canadian equipment marketplace Ritchie Bros Auctioneers Inc (RBA.TO) said on Monday it would buy U.S.-based IAA Inc (IAA.N) in a deal valued at about $7.3 billion to diversify into the salvage vehicle market. Both the companies have benefited from rising demand for used equipment. The global used equipment market is highly fragmented with total annual used equipment volumes estimated at over $300 billion. IAA stockholders will get $10 in cash and 0.5804 shares of Ritchie common stock for each IAA share held, the companies said. The purchase price of $46.88 per IAA share represents a premium of about 19% to IAA's stock close on Nov. 4.

☆ India should allow gradual rupee weakening, use fx reserves 'judiciously' - govt adviser
▼ + stars: | 2022-11-07 | by ( Shivangi Acharya | ) www.reuters.com time to read: +2 min

NEW DELHI, Nov 7 (Reuters) - India's central bank should allow rupee to depreciate gradually and use foreign exchange reserves judiciously, the government's chief economic adviser V. Anantha Nageswaran on Monday. Nageswaran comment on the rupee and foreign exchange reserves is the first official government comment since concerns about dwindling currency reserves emerged earlier this year. India's foreign currency reserves have fallen from a peak of $642 billion to $531 billion partly due to dollar sales to support the rupee. “We should in the short-run allow the rupee to depreciate gradually and we should use forex exchange reserves judiciously,” Nageswaran said at an online event. “We should augment foreign exchange reserves and that will help with any contingencies,” he added.

☆ Bank of Canada focus on more timely inflation data lowers overshoot risk
▼ + stars: | 2022-11-07 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

Inflation tends to be reported on a year-over-year basis to smooth out fluctuations that occur in shorter-term measures. Some forecasters expect Canada's economy to dip into recession next year along with a downturn in global activity. Twelve-month rates include price growth that occurred much earlier in the year, economists explain. Inflation is likely to be more persistent after it spread from goods prices into slower-moving items, such as wages and services. Still, the BoC has opened the door to slowing the pace of tightening to more normal steps of 25 basis points.

Instead, "the onus is still squarely, fully, 100% on the Bank of Canada to tighten," he said. The BoC's policy rate is seen peaking at 4.5% in early 2023. "I think they're going to struggle to see any improvement in the coming fiscal year," said Doug Porter, chief economist at BMO Capital Markets, adding that the fiscal measures were working at a slight crosscurrent to monetary policy. The fact that Prime Minister Justin Trudeau's government depends on the left-leaning New Democrats to pass legislation like the fiscal update helps explain the new spending, said Jimmy Jean, chief economist at Desjardins. ($1 = 1.3499 Canadian dollars)Reporting by Steve Scherer; Editing by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ Canada posts blowout job gain in October, unemployment rate unchanged
▼ + stars: | 2022-11-04 | by ( Julie Gordon | ) www.reuters.com time to read: +2 min

[1/2] A help wanted sign at a store along Queen Street West in Toronto Ontario, Canada June 10, 2022. The economy added a net 108,300 jobs last month, easily beating forecasts for 10,000 new jobs, while the jobless rate was unchanged at 5.2%. The blowout gain was entirely in full-time work, spread across both the goods and services sectors. The Bank of Canada raised its policy rate by 50 basis points to 3.75% last week and said while more increases would still be needed, it was nearing the end of its tightening campaign. The core-age unemployment rate stands at 4.2%, slightly above July's record low, but in a historically tight range last seen in the 1970s.

☆ VIEW Canada cuts 2023 GDP forecast but says economy to avoid recession
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +3 min

TORONTO, Nov 3 (Reuters) - Canadian Finance Minister Chrystia Freeland on Thursday unveiled an economic update, slashing 2023 real GDP forecast to 0.7%, but said the economy would avoid a recession, while announcing C$11.3 billion ($8.2 billion) in new spending this fiscal year and next. The so-called Fall Economic Statement also proposes a refundable tax credits for clean technologies, a 2% tax on share buybacks, among others. STORIES: read more read moreLINK:https://budget.gc.ca/fes-eea/2022/report-rapport/FES-EEA-2022-en.pdfCOMMENTSRANDALL BARTLETT, SENIOR DIRECTOR OF CANADIAN ECONOMICS AT DESJARDINS"As expected - big windfall to revenues coming from higher inflation and a stronger economy, tighter labour market." We know that once you add in provinces we're up closer to C$23 billion (in affordability measures)." Reporting by Fergal Smith, Ismail Shakil Editing by Denny ThomasOur Standards: The Thomson Reuters Trust Principles.

☆ Canada cuts 2022/23 deficit forecasts, pledges targeted new spending
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +1 min

The finance ministry said the deficit for this fiscal year would be C$36.4 billion, down more than 30% from the C$52.8 billion forecast in April. The ruling Liberals also forecast a small surplus in 2027/28, in what would be their first balanced budget forecast since 2015. Growth is slowing sharply as the Bank of Canada hikes rates to calm hot inflation. The fiscal update document forecast Canada's debt-to-GDP ratio would be 42.3% in 2022/23, versus 45.1% forecast in April, falling to 37.3% in 2027/28. (Reporting by Julie Gordon and Steve Scherer in Ottawa, Editing by Deepa Babington) ((julie.gordon@tr.com))Keywords: CANADA BUDGET/SPENDINGOur Standards: The Thomson Reuters Trust Principles.

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