US EditionEconomists expect Bank of Canada will pause interest rate cuts following surprising GDP growth
- Canada's economy grew at an annualized rate of 2.2% in Q1 2025, matching Q4 2024 growth, driven mainly by higher exports and business inventories.
- The growth stemmed from businesses stockpiling goods ahead of expected U.S. Tariffs, while domestic demand remained flat and housing activity declined.
- Mining, finance gains, and non-farm inventories supported expansion despite manufacturing weakness and a decline in ownership transfer costs, indicating slower resale activity.
- Economists noted the GDP rise exceeded consensus forecasts of 1.7%, with Doug Porter calling April’s growth "amazingly resilient," but detailed factors remain mixed in strength.
- As a result, most experts expect the Bank of Canada to pause interest rate cuts at the June 4 decision, awaiting further data amid trade uncertainties and inflation risks.
12 Articles
12 Articles
CambridgeToday.ca
Bank of Canada expected to hold key rate after surprise Q1 GDP jump
OTTAWA — The Canadian economy got a boost to start the year as businesses rushed to get ahead of tariffs, and some economists believe that lift will be enough to keep the Bank of Canada on the sidelines at its interest rate decision next week.
Bank of Canada expected to hold key rate
The Canadian economy received a boost at the beginning of the year as businesses hurried to prepare for tariffs, and some economists believe this increase will be sufficient to keep the Bank of Canada from making changes to its interest rate at the upcoming decision next week. Statistics Canada reported on Friday that real gross domestic product rose by 2.2 ...
BoC to Leave Rates Unchanged Ahead of Key Trade and Labour Market Updates - Action Forex
We expect the Bank of Canada will forego an interest rate cut on Wednesday in another close call following April’s pause after seven consecutive cuts. Arguments for a rate cut still remain. Labour markets have weakened, particularly in manufacturing where jobs dropped by 30,600 in April—the largest one-month decline since the pandemic—pushing unemployment to 6.9% […] The post BoC to Leave Rates Unchanged Ahead of Key Trade and Labour Market Upda…
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