Canada GDP’s rebound gives the Bank of Canada room to hold rates steady
Andrew DiCapua, principal economist at the Business Data Lab and the Canadian Chamber of Commerce, said the breadth stood out.
In an email to Wealth Professional, he said the figures suggest “the economy is not just surviving, but thriving,” with rate-sensitive sectors, not just energy, driving the gain.
The data reinforces the Governing Council’s view that “they don’t need to intervene to support the economy,” DiCapua said.
Money markets expect the central bank to stay on the sidelines, with investors pricing in a hold for the rest of the year, Reuters reported.
The Canadian Press, citing LSEG Data & Analytics, put the odds of a hold at the September 2 decision at nearly 97 percent as of Friday, with the benchmark rate sitting at 2.25 percent through 2026.
