Canadian economy remains flat: StatCan

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The Bank of Canada has increased its benchmark interest rate 10 times since March of last year, hiking it to a 22-year high of 5% in an effort to combat rampant and persistent consumer price index (CPI) inflation.

Wholesale trade and mining, quarrying, oil and gas extraction all saw growth in August, according to StatCan, while agriculture and forestry, retail and accommodation, manufacturing, and food services contracted.

While inflation remains above the Bank of Canada’s target rate of 2%, the central bank has seen fit to hit pause on rate hikes in its last two announcements, with the economy apparently slowing at a sufficient pace to justify no further action.

If September’s estimate is correct, it would mean the Canadian economy posted no significant growth in the four-month period between May and that month.

In a release shortly after the latest data was revealed, Royal Bank of Canada (RBC) said most signs suggested that the central bank would continue to leave rates unchanged in the coming months.

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