On Wednesday, Central Bank of Canada held its key lending rate at 1.75 percent, saying it expects the Canadian economy to slow in the second half of the year.
A slowdown in domestic growth in the second quarter was probably temporary, said in a statement, amid a prospect weakened by the current trade dispute between China and the United States.
“In sum, Canada’s economy is operating close to potential and inflation is on target,” the bank said. “However, escalating trade conflicts and related uncertainty are taking a toll on the global and Canadian economies.”
Stronger energy production and strong export growth propelled the Canadian economy unexpectedly higher in the second quarter.
The rise, announced in late August after a disappointing end to 2018 and a weak first quarter, was good news for Prime Minister Justin Trudeau less than two months before the election.
Your email address will not be published. Required fields are marked *