Weekly Digest – 18 December 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

‘Stubborn’ fixed mortgage rates might not fall despite Bank of Canada cut

The Bank of Canada’s latest oversized interest rate cut isn’t expected to deliver immediate relief to the Canadian fixed-mortgage market, experts warn. Despite the substantial reduction in borrowing costs tied to the central bank’s benchmark rate, BMO senior economist Robert Kavcic warned in a note to clients Thursday that fixed mortgage rates in Canada may have already hit their floor.

What the holiday GST relief will mean for consumers

In a bid to help Canadians deal with household costs amid the high cost of living, the federal government decided to waive the federal goods and services tax (GST), which is five per cent, on some products between Dec. 14 and Feb. 15. Here’s a breakdown of what you’ll save on and how the relief works.

Small businesses frustrated as Ottawa moves to end Canada Post strike

On Friday, Labour Minister Steven MacKinnon announced he was referring the dispute to the Canada Industrial Relations Board (CIRB) to determine whether the negotiations had reached an impasse. If the CIRB deems it unlikely the parties will reach a negotiated settlement, it will issue a back-to-work order, requiring Canadian Union of Postal Workers (CUPW) members to resume operations under the terms of the current collective agreements until May 22, 2025.

Ottawa removes 30% investment cap for Canadian pension funds

Canadian pension funds will no longer be restricted to a cap of 30 per cent control of companies they invest in and the federal government is working with the institutional investors and domestic airports to “explore measures for further pension fund investment on airport lands.”

Canada’s growth prospects brighten in 2025 but not without challenges

Canada’s economic growth challenges are expected to ease as the Bank of Canada continues to lower interest rates further and more quickly than other advanced economy central banks—but not right away, and longer-run challenges remain.

Gas prices fall; Canadians pick black, gas-powered SUVs as top vehicle choice

Gas prices slipped by a third of a penny per litre of regular fuel on average across Canada over the past week, according to data from Kalibrate. The third straight week of declines is good news for Canadians dreaming of a shiny, black SUV this holiday season.

Q4 2024 economic snapshot: Another challenging year for Canada

Earlier this year the focus of the Bank of Canada (BoC) pivoted from tightening to easing monetary policy as inflationary pressures eased and to provide some stimulus to a struggling economy. Will the interest cuts that first occurred in June have their intended impact in 2025? Or are there too many other headwinds that will limit the amount of economic activity? We tackle these questions in this quarter’s FCC economic snapshot.

Bank of Canada makes another hefty rate cut with slower pace of cuts going forward

The Bank of Canada lowered its interest rate by 50-basis points to 3.25 per cent on Wednesday, but signalled a slower pace of rate cuts moving forward as it focuses on keeping inflation close to target.

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