Canadian Financial News Roundup: Week of March 26 – April 1, 2023

By Sarah Gunther Apr 2, 2023

Below are some of the major headlines in the Canadian finance world for the past week:

  1. Bank of Canada maintains key interest rate
    The Bank of Canada announced that it will maintain the overnight rate target at 0.25%, citing concerns over global economic uncertainty and subdued inflation. The central bank will continue to monitor economic indicators and adjust policy as needed to support a full economic recovery.
  2. Toronto Stock Exchange reaches new record highs
    The Toronto Stock Exchange (TSX) hit a new all-time high this week, boosted by strong performances in the energy and financial sectors. The surge was attributed to rising oil prices and optimism about the Canadian economy’s resilience in the face of global headwinds.
  3. Statistics Canada reports GDP growth
    Statistics Canada released its latest GDP figures, showing a 1.5% growth for the fourth quarter of 2022. The positive results were driven by strong consumer spending, an upswing in the housing market, and improvements in the manufacturing sector.
  4. Canadian dollar strengthens against the U.S. dollar
    The Canadian dollar appreciated against the U.S. dollar, reaching a three-month high, due to higher oil prices and the Bank of Canada’s decision to hold interest rates steady. The loonie is expected to remain strong in the short term, but its trajectory may be influenced by potential rate changes from the U.S. Federal Reserve.
  5. Record-breaking month for Canadian housing market
    The Canadian Real Estate Association reported a record-breaking month for the housing market in March, with both sales and prices reaching new highs. Analysts point to low interest rates, increasing demand, and limited supply as driving factors behind the surging market.
  6. Shopify announces new partnership Canadian e-commerce giant
    Shopify announced a new partnership with TikTok, aiming to streamline advertising and e-commerce integration for businesses on the social media platform. This collaboration is expected to drive further growth for Shopify and increase exposure to international markets.
  7. Canadian government bonds yield curve steepens
    The Canadian government bond yield curve steepened this week, with the spread between the 2-year and 10-year yields widening. The move signals growing optimism about the country’s economic recovery and expectations for higher inflation in the long term.
  8. Air Canada’s financial performance improves
    Air Canada reported better-than-expected financial results for Q1 2023, thanks to increased passenger demand and cost-cutting measures implemented during the pandemic. The airline’s improved performance is seen as an indication of the broader recovery in the travel and tourism industry.

In summary, the past week in Canadian financial news was marked by strong economic growth, record highs in the housing market and the Toronto Stock Exchange, and a strengthening Canadian dollar. The Bank of Canada’s decision to maintain interest rates and the country’s continued economic recovery contributed to these positive trends.