Canadian Weekly Review: October 27, 2023

by Charles Hong, Happysona Principal Economist

Bank of Canada — Maintains Interest Rate in October’s Policy Announcement and Lowers Real GDP Projection.

• The Bank of Canada has maintained the interest rate at 5.00% since July 2023.
• The Bank adjusted its CPI inflation forecast upwards by 0.2 percentage points, settling at 3.9% for 2023. The forecast for 2024 was revised up by 0.5 percentage points to 3.0%.
• Canada’s real GDP growth projection for 2023 has been revised down from 1.8% to 1.2%. For 2024, the projection decreased from 1.2% to 0.9%.
• The subsequent monetary policy announcement is slated for December 6, 2023, with anticipations of the interest rate remaining steady.

The CFIB Small Business Barometer — October 2023: Indicating Sluggishness in Canadian Economic Growth.

• The short-term (3-month) confidence index experienced a significant drop, reaching 41.4. This marks the fifth consecutive monthly decrease.
• The long-term (12-month) outlook index declined to 47.2, marking its lowest point since April 2020.
• Increasing concerns are being raised regarding diminishing demand.

Upcoming Announcements:

In the week spanning October 30 to November 3, Statistics Canada is set to publish the real GDP results for August and the employment report for October.

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캐나다 주간 리뷰: 2023년 10월 27일