Last month, the Bank of Canada became the first major global central bank to pause its rate-hiking campaign, after lifting its benchmark rate to a 15-year high of 4.50%. It said no further tightening would be needed if the economy slows, or even moves into a slight recession, as it expects.
While inflation has cooled in recent months, other economic indicators are pointing to an economy that is picking up pace from a sluggish fourth quarter.
Preliminary data last week showed that gross domestic product (GDP) rose by 0.3% month-over-month in February, building on a stronger-than-expected 0.5% gain in January. Employment data for March showed a seventh consecutive job gain.
“The economy is showing renewed momentum, with more people working and seeing their incomes rise,” said James Orlando, a senior economist at TD Economics. “They are out spending again. This will carry through to higher economic growth.”
That is welcome news for most, but not…
Read More
