Canada’s economy hasn’t buckled under the weight of higher borrowing costs. On the contrary: strong growth has more economists predicting the central bank will resume raising interest rates soon.
Thirteen of 17 economists surveyed by Bloomberg say the Canadian economy is proving less sensitive to higher rates than previously believed. Almost half now say the Bank of Canada will raise its benchmark overnight rate, currently 4.5%, between now and September. In the March survey, analysts unanimously said Governor Tiff Macklem’s next move would be a cut.
Read More : Canada’s Economy Demonstrates Unexpected Immunity to Rising Interest Rates