Bank of Canada Officials Split over How Long the Recent Economic Rebound Will Last
Officials said growth picked up 2.5% last quarter, but they warned U.S. trade pressure and oil prices could weaken the rebound.
- On Wednesday, Bank of Canada minutes revealed a Governing Council split regarding the sustainability of the second-quarter economic rebound, with members debating whether recovery would persist beyond the near term.
- Policymakers argued the economy was emerging from stalled growth as energy-driven inflation pressures receded, feeling "the trade-off facing monetary policy had diminished."
- Renewed hostilities in the Middle East and United States trade policy complicate the Bank's mandate, with some members concerned about "signs of upward drift in medium-term inflation expectations."
- The Bank maintained the benchmark interest rate at 2.25 per cent on July 15, marking the sixth consecutive hold, as most economists expect borrowing costs to remain steady.
- Forecasts show growth accelerating from 0.7% this year to 1.8% in 2027 and 2028, though Washington's threat of 50 per cent tariffs on Canadian goods remains an "ever-present downside risk.
15 Articles
15 Articles
The members of the Board of Directors of the Bank of Canada were divided as to the viability of the recent economic recovery, as reflected in the summary of the deliberations that preceded the Central Bank's decision on interest rates at the beginning of the month.
Some Bank of Canada Officials Worried About Growth, Inflation Expectations
The Bank of Canada’s governing council agreed the economy was “adjusting” to shocks, though some questioned whether the recovery was sustainable and others raised concerns about rising inflation expectations.
The Toronto Star
Bank of Canada officials split over how long the recent economic rebound will last
OTTAWA - Members of the Bank of Canada's governing council were split over how sustainable a recent economic rebound could be, deliberations from the central bank's rate decision earlier this month show.
Bank of Canada governors split over sustainability of rebound, minutes show
By David Ljunggren OTTAWA, July 29 (Reuters) - Ahead of the Bank of Canada's July 15 interest rate decision, governors were split over the sustainability of the economic recovery, minutes of the meeting showed on Wednesday. The bank left its benchmark...
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