The Bank of Canada today argued that the recent economic slowdown has been largely due to temporary factors, but that growing global trade tensions mean that “the degree of accommodation being provided by the current policy interest rate remains appropriate”. While that seems to imply that the Bank could resume hiking again if global trade tensions eased, we think that policymakers are underestimating the extent to which the housing downturn will weigh on economic growth 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