Economy and Markets

Risk appetite is picking up after down-to-the-wire negotiations punted the U.S. debt ceiling issue into 2025.

In both Canada and the U.S., GDP continued to grow in Q1—and consumers kept spending. But the surge in interest rates will continue to take a toll.

Banks are tightening credit standards amid financial sector turmoil. The lending slowdown will weight on U.S. and euro area GDP.

Banking sector turmoil caused significant bond market volatility in March, particularly at the front end of the curve

Economic growth has been more resilient than feared in the wake of aggressive interest rate increases last year.

After a year of aggressive interest rate hikes, major economies continue to show signs of resilience and in some cases acceleration in early-2023.

With inflation slowing but labour markets proving resilient, hopes for a soft landing are growing.

Labour markets holding up but will eventually soften as economies slip into recession

The Canadian economy continues to inch closer to a recession in 2023.

Inflation is slowly starting to retreat from multi-decade highs, helped by falling energy prices and in some cases government relief programs.

We continue to see downside risk to both central banks’ GDP projections for next year.

The Canadian dollar fell below the 76 US cent mark in September for the first time since 2020.