4 July 2019

“Canada’s economy has been expanding in line with, or even ahead of, the BoC’s forecasts,” – noted TD Economics’ Brian DePratto. “Major real estate markets are recovering, and economic growth is speeding up in Q2. The external factors are still very uncertain, offsetting the domestic strength and suggesting the current rate direction is right”.

The national economy is strong and growing, even if slowly. The inflation remains within the Bank’s target limits. That’s why Moshe Lander, an economics lecturer at Concordia University, doesn’t think a rate cut is necessary.

“A rate hike is necessary when there’s a strong upward price pressure,” – he said. “There’s also not enough space for a decline, as the rate is already at a very low level. It’s more reasonable to wait for the data which could prove the need for a decline”.

According to Scotiabank’s Brett House, Canada has created more jobs during the first four months of 2019, than during the entire previous year. In his opinion, we’ll see faster growth in the following quarters as conditions in Canada differ from the situation in the United States.

“Canada’s major macroeconomic activity indicators keep recovering after a slight slowdown at the start of the year, and the inflation remains within the BoC’s target limits”, – he added.

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