Kevin Carmichael: Statistics Canada’s new tally of gross domestic product should prompt gut checks all over Ottawa
Thank goodness the Trudeau government abandoned its promise to balance the budget in 2019: We’d be looking at a recession if it hadn’t.
Gross domestic product slowed to an annual rate of 0.4 per cent over the final three months of 2018, compared with two per cent in the third quarter, StatCan reported on Friday. The miss suggests the economy isn’t running as hot as policy makers thought, which could prompt them to slow, or even stop, their march to higher interest rates. We won’t have to wait long to find out, as the central bank’s next policy announcement is set for Wednesday. Lynn Patterson, a deputy governor, is scheduled to deliver an update on the central bank’s thinking at an event in Hamilton the following day.
Before you blame the central bank for the slowdown, keep in mind that the policy rate was a ridiculously low 0.5 per cent in early 2017, and the current rate is only 1.75 per cent. Poloz is no John Crow, the former Bank of Canada governor known for putting low inflation ahead of economic growth. The current head of the central bank said all along that he knew households would be sensitive to higher interest rates, if only because borrowing costs had been so low for so long.
Ahead of last year’s budget, virtually every industry association called on the government to do something about competitiveness. The uncertain future of the North American Free Trade Agreement and the country’s inability to build pipelines was hurting business sentiment, and U.S. tax cuts had erased an advantage that Canada had enjoyed for years.
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.
Conversations That Matter: Unprepared for death“We’re under-prepared emotionally, psychologically and sociologically for the inevitable.”
Read more »
The It List: Swarovski One CollectionThe item we’re loving this week is …
Read more »
You don’t have to feel guilty over the pleasure Dirty John providesSadaf Ahsan: Its glossy appeal, based on soapy drama, makes it feel like we’re supposed to write it off as vapid
Read more »
Terry Glavin: Chrystia Freeland and the Lima Group are doing the right things on Venezuela. That doesn't mean they'll succeedIt may be one of the greatest triumphs in Canada’s efforts at multilateral diplomacy in decades, and yet, at least in Canada, the central role that Foreign Affairs Minister Chrystia Freeland …
Read more »
Dan Fumano: 'It makes no sense' — concerns over ending Vancouver's renters' committee“It’s not that some people shouldn’t be heard. We’re going to hear from homeowners no matter what … But I can see renters’ issues getting lost.”
Read more »
Alliance in holding pattern on Johnny Manziel - Sportsnet.ca'We don't know,' Alliance co-founder Charlie Ebersol said of Johnny Manziel on Friday. 'We’re trying to get to the bottom of what happened in Canada.'
Read more »
Hockey world praises Flames legend Jarome Iginla ahead of jersey retirement - Sportsnet.ca'We’re always going to have (the Golden Goal), so it’s pretty neat. You can only thank him so many times for that pass. Again and again.' - Sidney Crosby on Flames legend Jarome Iginla. (EricFrancis)
Read more »