Bank of Canada Still Expected to Stay on Hold Despite Economy's Recovery

Dow Jones
07/31

1017 ET - Canada's economy looks to have rebounded more strongly in 2Q than the Bank of Canada was anticipating, though after back-to-back weak quarters the chance of the central bank lifting interest rates this year still looks low, reckons Capital Economics' Ariane Curtis. Statistics Canada estimates industry-level GDP expanded 3.4% annualized in the latest quarter, and Curtis says GDP by expenditure may well show even stronger growth when it is released next month given net trade appears to have provided a big boost to the economy.

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