Barlow’s Research Roundup: BMO strategist predicts ‘rough ride’ ahead for Canada
BMO strategist Benjamin Reitzes warns of a challenging economic outlook for Canada, with growth expected to remain around 1 percent. The Bank of Canada is less likely to raise rates due to ongoing trade uncertainties and rising energy prices. Meanwhile, consumer spending remains uneven, and small business sentiment has declined significantly.
- ▪The Canadian economy is facing cyclical pressure on inflation and growth is projected to hover around 1 percent.
- ▪Retail sales have increased nominally, but higher gas prices have negatively impacted sales volumes.
- ▪Citi economist Veronica Clark argues that the market's forecast for Bank of Canada rate hikes is overly optimistic given the current economic conditions.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott BarlowCyclical pressure on inflationBMO rates and macro strategist Benjamin Reitzes’s weekly column was ominously titled Rough ride for Canada,“The economy remains in a challenging position. On the bright side, it also makes the Bank of Canada less likely to raise rates. The ongoing cloud of uncertainty around the outlook for trade/ tariffs, coupled with a spike in energy prices, is keeping the broader economy on the defensive. Growth has been uneven over the past year, and is expected to hover around 1 per cent through at least the middle of this year.
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