Canadian market participants expect the Bank of Canada (BoC) to start cutting its key policy rate from a 22-year high of 5.00% in April 2024, a month later than the previous forecast, according to a survey released by the central bank on Monday, Reuters reported. The survey showed that a median of 27 financial participants expect interest rates to drop to 4.00% in the fourth quarter of 2024, up from an expectation of 3.50% in the previous survey released in July. The survey was conducted from Sept.
Canada
The owner of Quebec’s main flyer distributor announced on Friday it will end the 45-year-old service, forcing more than 50 beleaguered local newspapers to rethink their strategy as well, the Eckville Echo reported. Starting in May, Montréal-based packaging and printing company TC Transcontinental plans to scrap the flyer bundles, known in Quebec as Publisac — distributed to 2.5 million households outside the city as part of a shift to a thin leaflet delivered by Canada Post.
The Bank of Canada has urged banks to reconsider offering variable-rate mortgages with fixed payments, concerned about the number of borrowers faced with negative amortization of their loans, Reuters reported. “I think that product needs a close look and I think it’ll get a close look,” Senior Deputy Governor Carolyn Rogers said in an interview with Bloomberg News on Friday. “I think you’ll see the industry reflect on how much they want to offer that product,” she added. Many variable-rate mortgages in Canada require borrowers to make regular payments in fixed amounts.
Canada will face rising economic uncertainty if the province of Alberta carries out a threat to withdraw from the Canada Pension Plan (CPP), federal Finance Minister Chrystia Freeland said on Friday, Reuters reported. Freeland made her remarks at a press conference after a phone call with regional finance ministers to discuss the issue. Alberta Finance Minister Nate Horner later on Friday said the province would not leave fellow Canadians without a stable pension and its associated benefits.