March 11, 2010
Canadian Economic Growth Exceeds Estimates
Did you know the Bank of Canada recently reported that economic growth has picked up by more than previously expected? In the 4th quarter of 2009, the Canadian economy expanded by 5% on an annualized basis, and the core rate of inflation hit 2% year-over-year in December 2009. On March 2nd, the Bank said that, “The main macroeconomic risks to the inflation projection are roughly balanced.” The Bank also restated its commitment to keep its lending rate on hold until the second half of 2010, conditional on the outlook for inflation. At that time, it is generally expected that interest rates will rise, but increases will be small and spread out over time.
