And it looks like interest rate hikes are off the table for now.
The Bank of Canada has made a big downward revision to their projection for Canada’s economic growth this year.
They’re predicting just 1.2% GDP growth this year, a big cut from their previous prediction of 1.7 growth.
A half percentage point revision is a big one, and is in line with the increasing amount of negative economic data.
The Bank has also made clear that interest rate hikes are off the table for now, holding the rate at 1.75%.
Additionally, they altered their neutral rate range downward by 25 basis points, to between 2.25% and 3.25%.
The Canadian Dollar fell on the news, and is down about 0.44% as of this being written.
This is a further indictment of Justin Trudeau’s failed economic policies. With Canada’s population growing rapidly due to huge immigration increases, it is appalling for our growth rate to be so low. And considering the rising cost of living and population growth, GDP ‘growth’ of 1.2% will feel like falling backwards for many Canadians.
Photo – YouTube