Economy slowing, says Bank of Canada - Macleans.ca
 

Economy slowing, says Bank of Canada

Second quarter growth will be less than half of first quarter growth


 

The Bank of Canada announced Thursday that Canada’s economy is slowing since the initial burst out of recession. The bank highlighted growing risks to the country’s economy in its latest Monetary Policy Report, where it reported the global economy is recovering, but not yet self-sustaining. The bank says this year’s second-quarter growth will be less than half what it was in the first quarter, and will fall further in the third quarter of 2010 to 2.8 per cent. On Tuesday, the bank elected to raise its benchmark overnight lending rate by 25 percentage points to 0.75 per cent, the second consecutive hike after the rate sat at an emergency low of effectively zero since April 2009.

CBC


 
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Economy slowing, says Bank of Canada

  1. Let's see, we put massive stimulus into the economy, and it barely moved. Now we're removing stimulus and the economy is slowing? Why, who'da thunk? It's almost like there's some kind of direct relationship between putting money into the pockets of people who don't have any, and those people spending money to drive the economy forward.

    • Except the stimulus hasn't been "pulled" yet, because much of it hasn't even been spent yet. It's being spend right now. Inconsequentially, I might add. Which just demonstrates that the "direct" relactionship you speak of isn't nearly so direct as politicians wish it was.

      • The Home Reno Tax Credit has ended. Many of the immediate projects, regardless of their worth (like snowmobile trails in Quebec) are complete. The bulk of the spending *won't* be spent because of the restrictions that the CPC put on it to begin with, such as requiring that the projects it was going for be complete within a certain time frame.

        • "The bulk" of it won't be spent? I know there were complaints from municipalities about the restriction of having to spend it all this year (simultaneous with complaints that it wasn't being spent quickly enough, amazingly), but that's the first time I've heard that "the bulk" would not be spent this year at all. If what you say is true, then I look forward to our deficit coming in at considerably less than what was projected. Somehow, I think they'll have found a way to spend every penny.

  2. The Canadian economy will slow down regardless of what Canadians do because the US is our biggest market and the US government has done everything it can to prevent economic recovery by borrowing trillions and threatening to take the money of anyone making it.

  3. Quick. Time to go to the polls, Harper, and crank up those Economic Action Plan ads one more time.

  4. Probably slowing down because no proper long-form census next year!