10 January 2014
Of course, weak labor market, low exports and small business investment are slowing the Canadian economic growth. Recently the Bank of Canada Governor Stephen Poloz said a rotation of demand from consumers with debts takes more time than expected. In his opinion, the national economy will not reach full capacity for two years.
In addition to it, the Canadian dollar fell to a four-year low and bond yields went down.
“These changes could make the central bank more cautious,” – said Paul Ferley, RBC, who correctly predicted today’s unemployment hike. “The Bank of Canada will probably have to review its easing policy.”
After this report more traders started predicting lower rates from the central bank in December 2014 than a month ago.