The latest inflation and employment reports show the Canadian economy could be cooling too fast, prompting several prominent economists to encourage the Bank of Canada to aggressively cut interest rates. The bank met this week and was expected to cut its key rate by at least 25 basis points or more. This column was written […] Read more
Tag Archives interest rates
Farmland transaction numbers down this year
FCC says producers are worried about commodity prices, input costs and interest rates, which could hurt farmland values
UPDATED: Farmland values chart added September 12, 2024 – 1030 CST – WINNIPEG — Less farmland has been bought and sold in Canada this year. Prices haven’t dropped, but the lack of transactions is a signal that demand is softer, says the chief economist at Farm Credit Canada. FCC will release its official estimates of […] Read more
Bank of Canada cuts interest rates
OTTAWA (Reuters) — The Bank of Canada has trimmed its key interest rate by 25 basis points for the second month in a row, bringing it to 4.5 per cent, and said more reductions in borrowing costs were likely if inflation continued to cool in line with forecasts. The central bank had kept its policy […] Read more
Bank of Canada interest rate cut to give some borrowers relief
Glacier FarmMedia – Businesses and consumers carrying debt under a variable rate should see some relief with the Bank of Canada’s decision to cut its policy rate today said Farm Credit Canada’s chief economist. “Otherwise I don’t expect the decision today to have major implications for interest rates in financial markets,” said J.P. Gervais in […] Read more
Carbon Alliance worries bill could add red tape, cost to farm lending
Private members bill proposes to add climate accountability strings to financial sector
Glacier FarmMedia – A bill under consideration in the Senate could add red tape and extra cost to ag lending, representatives from the Agriculture Carbon Alliance told senators April 18. “Anything that makes capital more expensive right now, what with where interest rates are, where prime is, is a concern for farmers,” said Dave Carey, […] Read more
Farm debt has room to grow
At the end of 2017, Canadian farm debt topped $100 billion. At the time, it was a bigger number than the national debt of 135 countries, noted Country Guide columnist Gerald Pilger. As of 2022, the most recent year on Statistics Canada’s published record, it reached $138.9 billion. Interest rate increases since early 2022 also […] Read more
Economic hazards identified
Glacier FarmMedia – Farm Credit Canada predicts a bit of a rocky road ahead for Canadian farmers, with input prices high, commodity prices low and interest rates not expected to drop in the short term. “The sentiment of the industry is not the greatest right now,” said Desmond Sobool, FCC’s director of economics and deputy […] Read more
Hope fades for cut in interest rates
OTTAWA (Reuters) — The Canadian economy expanded at an annualized rate of one percent in the fourth quarter, exceeding expectations, which should ease interest rate-cutting pressure on the central bank. Fourth-quarter gross domestic product was higher than the Bank of Canada’s expectation for zero growth and analysts’ median forecast for an expansion of 0.8 percent […] Read more
Loonie’s value depends on timing of interest rate declines
Many economists expect central banks will begin winding down interest rates this summer, and that will likely affect currency exchange rates, including the Canadian dollar. One thought circulating among economists and analysts is that because of the surprisingly strong economy in the United States, its central bank, the Federal Reserve, could remain wary of inflation […] Read more
FCC expects profitability to decline this year
A prominent Canadian agricultural lender is projecting a 4.8 percent decline in farm cash receipts in 2024, thanks in part to a softening market. Consequently, its leading economist is urging producers to find any way they can to save money. “In this environment, I do think that management skills are absolutely critical,” J.P. Gervais, vice-president […] Read more
