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Inflation and higher interest rates may alter P&C market

August 2, 2022 Glenn McGillivray

A one-two punch delivered by inflation and the resulting interest-rate increases could have several impacts on Canada’s P&C sector, including on claims costs, expense ratios, investment returns and the continued viability of the current hard market. Nearly all major industrialized

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Economists predict inflation climbed even higher in June amid ‘reopening effect’

July 18, 2022 Nojoud Al Mallees - THE CANADIAN PRESS

OTTAWA – Economists are predicting an even higher reading of inflation for June as energy and food prices crept higher and the economy reopened further. The consumer price index in Canada hit a nearly 40-year high of 7.7 per cent

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Economists expect Bank of Canada to hike key interest rate by 0.75%

July 12, 2022 Nojoud Al Mallees - THE CANADIAN PRESS

OTTAWA – Economists are predicting the Bank of Canada will hike its key interest rate by three-quarters of a percentage point on Wednesday as inflation rages on globally. In Canada, inflation hit a 39-year-high of 7.7 per cent in May

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Canada headed towards ‘moderate’ recession in 2023: RBC economists

July 7, 2022 Adena Ali - THE CANADIAN PRESS

TORONTO – Canada is headed towards a recession in 2023, but it will be short-lived and not as severe as prior downturns, according to a new report from RBC. RBC economists said Thursday that soaring food and energy prices, rising

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Bank of Canada surveys suggest business and consumer inflation expectations up

July 4, 2022 Craig Wong - THE CANADIAN PRESS

OTTAWA – A pair of new reports from the Bank of Canada point to rising inflation expectations by Canadian businesses and consumers. In its business outlook survey released Monday, the central bank said businesses’ expectations for near-term inflation have increased,

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Bank of Canada says economy can handle higher interest rates

June 10, 2022 Ian Bickis - THE CANADIAN PRESS

High household debt and elevated housing prices have become bigger vulnerabilities in the past year, but the economy can still handle the rising interest rates needed to tame inflation, Bank of Canada governor Tiff Macklem said Thursday.   “We think the

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Bank of Canada raises key rate by half a point amid stubbornly high inflation

June 1, 2022 Christopher Reynolds - THE CANADIAN PRESS

OTTAWA – In an unprecedented move, the Bank of Canada has announced a major increase to its key interest rate for the second time in two months as it forecasts higher consumer prices to come this year. The central bank

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Inflation rate up slightly in April to 6.8 per cent: Statistics Canada

May 18, 2022 The Canadian Press

OTTAWA – The cost of nearly everything at the grocery store continued to climb higher to push the annual inflation rate up in April. Statistics Canada said Wednesday that its consumer price index for April rose 6.8 per cent compared

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Key interest rate could soon go up another half percentage point, central bank says

April 25, 2022 The Canadian Press

OTTAWA – The governor of the Bank of Canada is signalling Canada’s key interest rate could go up another half percentage point in June to help wrestle inflation under control.   Tiff Macklem is appearing at the House of Commons standing

Bank of Canada Governor Tiff Macklem speaking during a news conference on Wednesday, April 13
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Bank of Canada raises key interest rate and warns further hikes still to come

April 13, 2022 The Canadian Press

OTTAWA – The Bank of Canada raised its key interest rate by the highest amount in more than 20 years and warned more rate hikes are coming as it increased its outlook for inflation. The central bank hiked its policy

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Big banks raise prime rate after BoC hike

March 2, 2022 Advisor’s Edge staff, with files from The Canadian Press

Many of Canada’s largest banks are increasing their prime interest rate by 25 basis points following the Bank of Canada’s rate announcement. The central bank said Wednesday it was increasing its key rate by a quarter of a percentage point

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Bank of Canada keeps key interest rate target on hold, but warns of looming hikes

January 26, 2022 Jordan Press - THE CANADIAN PRESS

OTTAWA – The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent, but warning it won’t stay there for much longer. The trendsetting rate has been at its rock-bottom level since March 2020