Canadian retail sales flat amid elevated interest rates

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“Retail sales were solid in October, with the details even firmer than the headline,” said Shelly Kaushik, an economist with Bank of Montreal, in a report to investors. “However, indicators of weakness for November suggest consumer spending could slow meaningfully in the rest of the fourth quarter.”

Earlier this month, the Bank of Canada kept its benchmark overnight rate at 5%. The Canadian economy has shown signs of stagnation, according to the Bloomberg report. In a separate release, Statistics Canada said payroll employment decreased by 44,600 in October, offsetting gains made in September and following little variation in July and August.

Tiff Macklem, governor of the Bank of Canada, told BNN Bloomberg Television that he expects to cut rates next year. However, he noted he needs to see several months of sustained downward momentum in core inflation first.

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