Canada’s Higher-Than-Expected Economy Growth Eases Pressure on Bank of Canada to Cut Rates, Experts Say

A reawakening of Canada’s stagnant economy at the end of 2023 may have kept a recession at bay, but it could delay a highly anticipated cut to interest rates, experts say. A recession, which is defined as two consecutive quarters of negative gross domestic product (GDP) growth, was expected to hit the country last year after the Bank of Canada raised interest rates in an attempt to bring inflation under control. Canada’s economy has been struggling to grow in the face of both high inflation and increased interest rates as Canadians cut spending to focus on paying higher housing and food costs. The resulting decrease in spending caused businesses’ sales to decrease sharply in 2023, but it appears GDP made a slight comeback by year’s end, according to a recent Statistics Canada report....