Articles

Over the past few years, there have been challenging macro issues on many different fronts, from the black swan events of the pandemic to high inflation and large financial market drawdowns that result from rapidly rising interest rates. Canada’s Consumer Price Index (CPI), the key indicator of inflation, showed a meaningful slowdown in recent months in the wake of inflationary pressure. To prevent the risk of over-correcting the economy to moderate inflation, the Bank of Canada has recently begun cutting its key policy rate, and this move will potentially have a positive impact on risky assets.