The Bank of Canada raised its overnight policy rate this morning by 25 basis points to 4.75 per cent. In its statement accompanying the decision, the bank noted that the Canadian economy was stronger than expected in the first quarter and spending in interest rates sensitive sectors, like the housing market, has picked up. On inflation, the Bank continues to expect CPI inflation to ease to 3 per cent by summer, however, monthly inflation continues to trend about two times higher than its 2 per cent target, a circumstance the Bank fears could become persistent without immediate action. 

After signalling a pause in its monetary tightening just a few months ago, the Bank of Canada has already changed course. While inflation has come down significantly, core inflation has been stubbornly trending around 4 per cent, and with home prices already recovering across the country, inflationary pressures are rising.  In the Bank's estimation, interest rates will need to move higher to slow the economy and bring inflation back to its 2 per cent target. The Bank will likely raise its overnight rate at least once more to 5 per cent.  Those expectations are already being priced into 5-year Canadian bond yields, which rose to their highest level since October 2022 following the rate decision. That increase will prompt mortgage lenders to follow suit, likely bringing 5-year fixed mortgage rates back to above 5.5 per cent.   

Link: https://mailchi.mp/bcrea/bank-of-canada-interest-rate-announcement-2sv9ev4btu 

For more information, please contact: Gino Pezzani.

Artificial intelligence (AI) continues to advance, and ChatGPT 4 now stands on the shoulders of the wildly popular ChatGPT 3 and 3.5 AI tools. As ChatGPT 4 rolls out, it might prove even more disruptive.

Launched in late November 2022, ChatGPT 3.5 was a resounding success. The bot's website, Chat.openai.com, received only 153,000 visitors in November.

Visits climbed to 266 million in December and 616 million in January. Since then, the website has seen more than 1 billion searches a month. Perhaps traffic will cool, but ChatGPT 4 will drive even more engagement.

ChatGPT 4 might also drive revenue growth. OpenAI expects revenues to hit at least 200 million this year and one billion in 2024.

OpenAI makes money by lending its AI solutions to various platforms for a price. The company has also rolled out a $20 monthly subscription plan that offers faster services and exclusive access to ChatGPT 4.

ChatGPT 4 could become handy for everyday uses, such as checking prices, shopping, meal planning, and travel and vacation planning—nearly anything that requires aggregated data.

What makes ChatGPT 4 a better solution than ChatGPT 3 and 3.5? As you might expect with AI, the newest iteration is smarter. OpenAI claims that ChatGPT 4 is ten times more powerful than ChatGPT 3.5, although they haven't fully explained how. Reported internal evaluations did find ChatGPT 4 to be 40% more likely to produce factual responses, 60% less likely to make up stuff, and 82% less likely to respond to disallowed requests. Producing violent content, among other things, is banned.

Want to work out but feel too tired due to the summer heat? Try these tips before you begin your workout to help you stay motivated!

Choose the right time of day. Try to exercise early in the morning or late in the evening, when it's cooler and more comfortable.

Stay hydrated. Drink plenty of water before, during and after your workout to prevent dehydration and keep your body functioning optimally.

Wear appropriate clothing. Choose lightweight, breathable clothing that will keep you cool and comfortable during your workout. 

Find a workout buddy. Exercising with a friend or family member can help you stay motivated and accountable, and make your workouts more enjoyable.

Mix it up. To maintain your interest and prevent boredom, try different types of exercises, such as swimming, rollerskating, biking or yoga.