Although core inflation is dangerously low and wage growth anaemic, the Bank of Canada’s decision to hold its policy interest rate at 0.50% can be justified on the recent improvement in the activity data. But with non-energy exports still misfiring, infrastructure spending lagging and a real estate slowdown foreshadowing wider economic growth challenges ahead, we still expect an interest rate cut later this year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services