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interest rates

Bank of Canada governor Tiff Macklem at a press conference
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Bank of Canada considered raising interest rates at its last meeting

April 26, 2023 Nojoud Al Mallees - THE CANADIAN PRESS

OTTAWA – The Bank of Canada considered raising interest rates earlier this month, as it feared being too slow to react to sticky inflation. In its summary of deliberations released Wednesday, the central bank says its governing council contemplated another

What's the economic outlook for 2023?
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What financial uncertainty may mean for D&O claims

April 12, 2023 Philip Porado

Private companies, including not-for-profits, face rising legal and other exposures from lenders and private investors, customers and employees that can impact Directors & Officers (D&O) insurance policies. And, over the past three years, economic volatility has emerged as a key

Inflation is getting away from us
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How insurers can respond to interest rate hikes and market volatility

March 24, 2023 Philip Porado

How might high inflation, rising interest rates, and current volatility in stock and bond markets impact future P&C insurance pricing? It’s too early to tell. For insurers, the current environment requires consistent monitoring of profitability and portfolio performance, said Fiona

Volcano Calderon Hondo crater Fuerteventura Spain
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High interest rates crater the P&C industry’s investment income

March 21, 2023 by David Gambrill

Despite an 8% increase in direct premiums written in 2022, and generally stabilizing—if not decreasing—loss ratios in several key business lines, Canadian P&C insurers’ net investment returns took a huge hit from the impact of rising interest rates last year,

Rising interest rates and inflation
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Despite inflation slowing in December, Bank of Canada still expected to hike rates  

January 17, 2023 Nojoud Al Mallees - THE CANADIAN PRESS

OTTAWA – Canada’s annual inflation rate slowed last month but economists are still expecting the Bank of Canada to hike its key interest rate next week.   In its latest consumer price index released Tuesday, Statistics Canada said the country’s annual

The Bank of Canada building in Ottawa
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Bank of Canada hikes key rate by half percentage point, signals possible pause

December 7, 2022 Nojoud Al Mallees - THE CANADIAN PRESS

OTTAWA – The Bank of Canada hiked its key interest rate by half a percentage point Wednesday to 4.25 per cent – the highest it’s been since January 2008 – while signalling it may pause its aggressive rate hike cycle.

Rollercoaster of interest rates and inflation
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How OSFI expects insurers to react to market volatility

November 18, 2022 by Jason Contant

Canada’s solvency regulator is acutely focused on the current macroeconomic environment and expects insurers to practice ‘capital conservation’ due to market volatility, a senior executive said at an industry event Thursday. The Office of the Superintendent of Financial Institutions (OSFI)

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Where rising interest rates will lead insurers in 2022-23

July 15, 2022 by Alyssa DiSabatino

Economic slowdown and high inflation will weigh down insurance market growth in 2022-23, primarily affecting property and auto insurers; still, rising interest rates may actually be a silver lining for insurers, Swiss Re Institute’s latest sigma report notes.    Swiss

Bank of Canada governor Tiff Macklem
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Bank of Canada governor says he won’t ‘rule anything out’ on rates

April 22, 2022 Adena Ali - THE CANADIAN PRESS

TORONTO – On a day when the Federal Reserve spooked markets with its tough talk on interest rates, Bank of Canada governor Tiff Macklem says he won’t “rule anything out” when it comes to the central bank’s own interest rate

Caution Sign - Higher Interest Rates Ahead
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What higher interest rates mean for the P&C industry

April 14, 2022 by David Gambrill

When the Bank of Canada hiked interest rates a full half point on Wednesday, at first blush, it seemed Canada’s P&C industry might benefit from the inflation-curbing measure by garnering greater returns on their investments. But it’s not that straightforward,

Magnifying glass looking at interest rates
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Increased productivity, business investment, needed to temper inflation

February 9, 2022 The Canadian Press

OTTAWA – The governor of the Bank of Canada says higher interest rates are coming, but businesses also need to boost productivity to help keep rising prices in check over the long term. Tiff Macklem, speaking virtually at a Canadian

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How long will the haul be for Canada and the pandemic?

November 9, 2020 by Adam Malik

A second wave of the COVID-19 pandemic is gripping parts of Canada and it will likely be well into next year until we come out of it, an expert predicts. And the longer things drag on, the worse it bodes