Recession looms due to rising interest rates, changing supply chains

Published on: Sep 27, 2022

Canada is expected to enter a mild and short-lived recession by the end of the year. This economic outlook examines the causes and effects of a recession in Canada for both consumers and businesses alike. There are two main factors that are contributing to an impending recession: the Bank of Canada’s aggressive increase of interest rates and the need to rebalance inventories. With the consecutive hike of interest rates this year, it will take time for inflation to return to target as higher rates impact the economy. As such, we do not expect inflation to return to 2% before the end of 2024.


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