Free Trial

RBC: Q1 GDP Reaffirms BoC Rate Hike Call

CANADA
  • Real GDP increased +3.1% annualized in Q1 as robust household consumption (+3.4% despite a soft start to the quarter with Omicron restrictions) and business investment offset a sizeable decline in net trade.
  • Near-term growth momentum remains firm as household services consumption rebounds, but elsewhere production capacity constraints are limiting the amount that output can increase.
  • Rising costs, worsening supply chain conditions and acute labour shortages were all once again reported as key obstacles for future growth by businesses in the Q2 Survey on Businesses Conditions, and many of these cannot be addressed in the short run.
  • RBC continue to look for another 50bp hike tomorrow with follow-up hikes until 2.5% later this year.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.