The 10-Minute Take RBC Thought Leadership

An aging population has dire economic and fiscal consequences. It means widespread labour shortages, more upward pressure on wage growth and inflation, and potentially a growing funding gap for public social services. Canada is not alone in facing such challenges. What is unique, however, is how the Canadian government has utilized immigration as a tool to combat those headwinds.

On this episode of the 10-Minute Take, join RBC Economists Carrie Freestone and Claire Fan as they unpack what it means for the economy to have an aging population. They’ll highlight how Canada measures up against the U.S. and the role immigration can play to soften the blow.

In April, the Bank of Canada shifted its estimate for neutral rate up 25 basis points- a reflection that the 'normal' of interest rates in the post-pandemic era is likely higher than the decade before. What exactly are ‘neutral’ rates and how did the Bank know to adjust them higher? After many decades of neutral rates moving lower, why is the pendulum swinging back?

On this episode of the 10-Minute Take, join RBC Economists Claire Fan and Carrie Freestone as they chat monetary policy and answer all of your burning questions around the ‘neutral’ rate of interest.

In early 2024, the disparity in economic performance among advanced economies has grown more apparent. Increasingly, we are seeing the Canadian economy underperforming, especially comparing to strong conditions in the U.S.. Not so optimistic, however, are the U.S. inflation numbers that are once again gathering heat. This has prompted considerations that the Federal Reserve will need to keep rates higher for much longer. But will the BoC have to follow suit?

On this week’s episode of the 10-Minute Take, RBC Economists Claire Fan and Carrie Freestone will answer this question for you. They will start by going over where the potential concerns are with a rate divergence between the Bank of Canada and the Fed, before getting to why the BoC is not expected to be derailed in its upcoming easing cycle.

Housing affordability has become a generational concern in Canada and recently took centre-stage in the Federal Budget. At today’s prices, two-thirds of Canadian households cannot afford to purchase a detached home based on earned-income alone. How did we get here? And how can we improve access to home ownership?

On this week’s episode of the 10-Minute Take we are joined by special guest, RBC’s Assistant Chief Economist Robert Hogue to discuss his latest report, The Great Rebuild. Robert will unpack what has driven Canada’s momentous housing supply challenges and how they can be solved in the years ahead.

Two weeks ago, Canada’s Minister of Immigration announced plans to limit the scope of international migration in Canada over the coming years. The announcement detailed early plans to reduce the share of temporary residents (mostly study and work permit holders) in the population to 5% over the next three years. In order for that target to be reached, the number of temporary residents will need to drop by a staggering 20% over the same time frame.

On this week’s episode of the 10-Minute Take, RBC Economists Claire Fan and Carrie Freestone break this new policy down. They will walk through details of the newly announced cap, who’s expected to be impacted in the near-term before delving deeper to discuss the broader implications on Canada’s population growth, GDP and other important economic metrics.

Canadian renters are more squeezed than ever before! Renters are allocating a greater share of their take-home pay to housing than homeowners at the same time that costs for other essentials (and interest on debt) have risen. This has resulted in renters as a collective spending more than they earn. Down-payment requirements are mounting relative to take-home pay, making it exceptionally difficult to save for a home.

On this week’s episode of the 10-Minute Take, RBC Economists Claire Fan and Carrie Freestone unpack housing as a vehicle for wealth accumulation, explaining how opportunities for wealth generation are becoming less accessible and what that means for a large segment of Canada’s population.