Economists advance their forecast from the second quarter of 2023 to the first quarter. Read on
. Claire Fan and Nathan Janzen originally predicted the downturn would come in the second quarter, but in a new report they said various factors will “hasten the arrival of a recession in Canada,” including rising interest rates.We deliver the local news you need in these turbulent times on weekdays at 3 p.m.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
However, interest rates will play the most “significant” role in the economy’s trajectory, the authors wrote. They forecast the Bank of Canada will raise its benchmark lending rate to four per cent fromThis advertisement has not loaded yet, but your article continues below.The United States, they said, will continue hiking through the rest of the year — to between 4.5 per cent and 4.75 per cent — before taking a breather early next year.
, off the four-decade high of 8.1 per cent in June, but still well above the Bank of Canada’s target of two per cent. “More stubborn inflation trends over the coming months could yet prompt additional hikes, and a potentially larger decline in household consumption and a deeper recession,” Fan and Janzen wrote.
The pair calculated that $3,000 in average purchasing power will be lost next year because of higher borrowing costs and the higher cost of living. That means households will have less cash on hand to drive growth.Article content
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
2023 BMW M2, 2023 Alfa Romeo Tonale Driven, And Rezvani Vengeance Debuts: Your Morning Brief | CarscoopsPlus, Canada's Project Arrow EV and Alpine Alpenglow concept teased
Read more »
The Spring 2023 Trends Reflect the World Around UsFrom utilitarian details to neo-minimalism and more, these are the trends that matter in your wardrobe—and the world from the spring 2023 shows.
Read more »
2023 Jaguar F-Type 75 marks sports car's final year | AutocarFeast your eyes: This is the final ever Jaguar F-Type 😍 It will bow out at the end of 2023, bringing an end to 75 years of pure-combustion Jaguar sports cars
Read more »
2023 Kia Niro Distinguished by 3 Levels of Electrification\u2014Hybrid, PHEV, EVKia’s least expensive crossover—redesigned for 2023—is quieter, more refined, and more tech-forward than before.
Read more »
How to approach Medicare’s 2023 enrollment periodThe Inflation Reduction Act may affect how some beneficiaries want or need to structure their coverage
Read more »
Ethereum-scaling protocol zkSync’s layer-3 prototype set for testing in 2023Ahead of zkSync’s L2 mainnet launch later this month, the project has revealed an L3 'Pathfinder' prototype aimed at providing interoperability and scaling is set to drop on public testnets in Q1 2023.
Read more »