GDP reaction: Economist says slowdown suggests Bank of Canada can step back
BNN Bloomberg
A second-quarter slowdown of the Canadian economy is proof that the Bank of Canada’s interest rate hikes are effectively working their way through the system, an economist said Friday.
Canada’s gross domestic product (GDP) shrank at a 0.2 per cent annualized pace in the second quarter of 2023, according to the latest data from Statistics Canada.
The data released Friday was weaker than what economists had forecasted and pointed to an overall cooling of the country’s economy.
“We are seeing the Bank of Canada getting some traction here with those rate hikes,” Dawn Desjardins, chief economist at Deloitte Canada, told BNN Bloomberg in a television interview.
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