There’s finally a glimmer of hope on the horizon. Financial markets rose significantly in November. Although the fight against inflation remains a constant one, central banks are keeping their key rates high to slow an economy that was overheating, not so long ago. The decline seen in October was reversed in November, as both Canadian and U.S. dividend yields rose, recouping the initial mid-year gains. Let’s take a closer look at November’s economic developments.


At the Bank of Canada, the key rate remains unchanged. The last increase was in July, bringing the rate to 5%; it has remained unchanged ever since. According to its projections, the Bank of Canada expects inflation to remain resilient through the end of 2024, though it will start to show signs of slowing down over the course of the year. It’s crucial to stress that these forecasts are only expectations, and that only the future will give us a better idea of what’s happening.

Unemployment has risen to 5.5%. In a recession, the unemployment rate hovers around 7%; it might look like we’re heading in that direction, but that’s not yet the case. Other recession indicators have yet to emerge, so the next few months will be crucial for anticipating future trends.

United States

GDP is holding up well in the United States, but there’s no reason to declare victory yet. Historical data shows that, following significant increases in key interest rates, GDP rebounds before it subsequently declines. It is critical that we keep our eyes open for more detailed information, on this front.

As far as the key interest rate is concerned, the Federal Reserve (the Fed) is maintaining its current rate. Just as in Canada, the most recent increase was in July, which brought the rate to its current level of between 5.25 and 5.5%.


A marked slowdown in manufacturing activity is being felt in the Eurozone, reflecting the initial effects of economic tightening. As well, GDP in the Eurozone contracted in the third quarter, according to data from economists at the Banque Nationale.

Emerging markets

China is doing everything it can to avoid a deflationary spiral. On October 24, it issued an additional 1 trillion yuan in government bonds to implement stimulus initiatives.

To reiterate as we close our November 2023 business news, we are starting to see a glimmer of hope, but the battle against inflation is not over. The markets continue to wobble and the future remains uncertain. We will continue to monitor developments and inform you of any changes. Feel free to contact us to update your portfolio and investor profile. If you have any questions about your financial situation, feel free to book an appointment with one of our advisors, who will be happy to help you.