Economics Newsletter – June 14th, 2024

New UWES articles, CPI data, and more!

Written By: Benjamin Pipicelli, Dorje Gyaltsen, & Gordon Huynh

Economics Newsletter – June 14, 2024

Canada’s Economy at a Glance


Author’s Commentary

Deputy Governor Sharon Kozicki of the Bank of Canada highlighted that the unconventional measures taken during the pandemic, such as quantitative easing (QE), were vital for boosting the economy, but future use of QE will require extremely high justification. In a speech to the Canadian Association for Business Economics, she emphasized the central bank’s efforts to rebuild public trust and transparency. In 2020, with the policy interest rate at its lowest, the bank started purchasing more government bonds to maintain low interest rates, marking its first use of QE and only its second use of forward guidance. The Bank of Canada is now conducting an in-depth review of its pandemic-era actions to learn and prepare for future crises. Recently, it cut its key interest rate to 4.75%, with further reductions possible if inflation continues to ease, and the summary of these deliberations will be released on June 19.

Read more
and more
and more

News and Noteworthy

Here’s how much a Shake Shack burger is going to cost Canadians

Burger lovers across the country waiting for Shake Shack’s (SHAK) Canadian expansion are going to have to be patient. As the New York-based chain gears up to open its first restaurant in Canada this week, the company says it’s in no rush to quickly expand to new locations. Read more.

Bank of Canada first to cut rates in G7

The Bank of Canada cut its benchmark interest rate by 25 basis points to 4.75 percent on Wednesday, the first reduction in more than four years, and said further cuts may be coming if inflation continues to ease. Read more.

Missed mortgage, credit payments in Canada hit pre-COVID highs

The financial burden on Canadian households intensified in the first quarter of 2024, with missed payments on mortgages and other forms of credit rising to pre-pandemic levels, according to Equifax Canada. Read more.

Gas prices in Canada fall, with a double-digit drop in Vancouver

Gas prices dropped an average of 5.2 cents per litre across Canada over the past week, according to pump data from nearly 80 cities. Sarnia, Ont. and Vancouver saw the largest double-digit drops. Read more.

Immigration caps, and low unemployment further squeeze Canadian businesses

With various unemployment figures at or near record lows, the Canadian government’s planned limits on non-permanent residents (NPRs) will add to the struggles of the hospitality and retail sectors, a Desjardins economist says. Read more.


Economics Society News, Events, and Articles

– Keep an eye out on our Instagram page @uweconsoc for updates regarding future events

– The Stock Competition sign-up is now open! Check out our IG for more information and keep an eye out for updates via our newsletters and Instagram! @uweconsoc

Leave a Reply

Your email address will not be published. Required fields are marked *