Economic Indicators

Spillover but no crisis

With Iceland in bankruptcy, Hungary and Ukraine requiring a lending hand from the International Monetary Fund, and dozens of U.S. financial institutions in hock, Canadian financial institutions so far have proven robust. Still, they are not immune to spillover effects, says the Bank of Canada. Indeed, its Financial System Review, released yesterday, paints a picture […]

By Scot Blythe |December 12, 2008

4 min read

Household balance sheets showing strain: BoC

While it was an overleveraged U.S. household that was a guiding factor to the current financial crisis, the destruction it has caused in the capital markets has transformed Canadian individual household debt levels from sound to potentially vulnerable, the Bank of Canada says. According to the BoC’s Financial System Review, the decline in stock markets […]

By Mark Noble |December 11, 2008

3 min read

CIBC trims TSX outlook

Investors may want to hold their cash and watch for an entry point before jumping back into the equity markets, as there may be yet another leg down before a recovery firms up in the second half of 2009, according to a report from CIBC World Markets. The research department of the bank has trimmed […]

By Steven Lamb |December 10, 2008

2 min read

Bank of Canada chops rate

The Bank of Canada has slashed its key overnight lending rate by 75 basis points, to 1.5%. The Bank rate has been adjusted accordingly to 1.75%. Many Bank watchers had been anticipating a cut of just 50 basis points. “The outlook for the world economy has deteriorated significantly and the global recession will be broader […]

By Steven Lamb |December 9, 2008

2 min read