The Bank of Canada is expected to take in stride surprising recent economic strength and leave interest rates unchanged at its meeting on Wednesday, pinning its hopes on activity cooling as higher borrowing costs sink in, analysts said.
February's surprisingly strong figures have led economists to revise up their GDP estimates, with the median forecast of six economists surveyed by Reuters pegging first-quarter growth at 2.5%, far higher than the BoC's projection of 0.5%.
Investors reason that the full impact of higher borrowing costs has yet to be felt, and recent stress in the global banking system has fueled concern of a credit crunch, including in the United States. Canada sends 75% of its exports to its southern neighbor. "We suspect that the Bank of Canada will view the apparent strength in Q1 GDP similarly, and increase its estimate of potential growth."
Economists say that rapid population growth as well as easing supply chain disruptions could add to Canada's potential growth, which was last estimated by the BoC to be 2.25% on average over 2023 and 2024.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank deposits rise for first time since collapse of Silicon Valley BankDeposits at U.S. banks rose slightly in the last week of March in another sign the financial system has stabilized, but lending to businesses declined.
Read more »
French prosecutors name bank chairman a suspect in Lebanese central bank probeFrench prosecutors said they have put a Lebanese banker under formal investigation, the latest move in a cross-border probe looking into whether Lebanon’s central bank governor Riad Salameh, embezzled vast sums of public funds.
Read more »
Wednesday Takes an Intimate Snapshot of the South on Rat Saw God‘Rat Saw God' by Wednesday_Band_ Review: The Asheville-based quintet’s latest album blends blue-grass and shoegaze to create a set of visceral vignettes.
Read more »
Wednesday Are Scary-Good Southern Indie-Rock Heroes on 'Rat Saw God'REVIEW: North Carolina’s Wednesday_Band_ are a great indie-rock band with a rootsy, noisy sound, and a new album full of stories about messed up kids coming of age in the South.
Read more »
Wednesday’s Twangy Shoegaze Is Full Of SurprisesFrom songs about relationships to lyrics with arresting, scene-setting details, Wednesday_Band_'s latest album, 'Rat Saw God,' is the group's biggest level up yet
Read more »
NBA play-in tournament: Chicago Bulls head to Toronto to play the Raptors on WednesdayThe Chicago Bulls will face the Toronto Raptors in the first round of the NBA play-in tournament on Wednesday.
Read more »