The Bank of Canada signalled Tuesday that it’s lowering its forecasts for economic growth in the second half of 2013 and possibly for next year, citing a more prudent consumer and an export sector that has yet to fully recover.
Senior deputy governor Tiff Macklem said the central bank no longer expects the July-September period to grow at a rate of 3.8 per cent as previously forecast.
Instead, the bank says the third quarter will likely show an economy that advanced at a more moderate pace of 2.0 per cent to 2.5 per cent, the same speed it now expects will continue in the fourth quarter. Previously, it had penciled in a 2.5 per cent expansion for the last three months of the year.
The Canadian dollar dipped on the news and was selling nearly a quarter of a cent lower in early afternoon trading…
- Economy not growing as quickly as thought: BoC (cp24.com)
- Bank of Canada Sr. Dep. Governor Macklem Toronto Speech (Text) – Bloomberg (bloomberg.com)
- Bank of Canada shaves growth forecast for economy (metronews.ca)