Economy and Markets

Front-loading has become the motto of central banks looking to quickly remove policy support amid intense inflationary pressure.

We expect the coming downturn in Canada will be ‘moderate’ by historical standards. – RBC Economics

Stronger-than-expected inflation continues to force central banks into aggressive action. – RBC Economics

We now see more accelerated tightening cycles and higher terminal rates in all of the economies we track.

May finally brought some relief in what has been a consistent Treasury market selloff this year.

With most restrictions lifted, the hard hit travel industry is poised for better than average growth.

Both equity and bond markets continued to sell off in April and early May amid heightened volatility as investors grapple with a new central bank regime ushered in by the highest rates of inflation in the inflation targeting era. Gone is the cautious approach to monetary policy seen over the past decade—central banks are raising […]

The Fed kicked off its tightening cycle in March with a widely expected 25 bp hike.

The invasion of Ukraine is rocking financial markets, pushing commodity prices higher, and threatening further disruptions to already stretched global supply chains.

Equity markets plunged and prices for key commodities produced in the region jumped higher with WTI trading above US$100/bbl for the first time since 2014. – RBC Economics

The hawkish turn from major central banks that began late last year only accelerated in the early stages of 2022. Both the BoC and Fed used their January meetings to flag imminent rate increases and we look for hikes from both in March, slightly earlier than we previously assumed. The Fed sounded particularly hawkish, with […]

Hawkish central banks and concerns about persistent inflation drove a selloff in government bonds with 10-year yields closing in on 2021’s highs.