A terrific summary of what has been quite a turnaround for the Bank of Canada. We have gone from global slowdown on the horizon and domestic strength to domestic weakness is and robust global growth in the span of a few months. Either things have really changed that much or the Bank of Canada was not seeing things very clearly a few months ago.
- As the article puts it:
- “Last fall, the sentiment was that the Canadian central bank’s decision to leave its policy rate unchanged, despite falling rates at central banks around the world, had to do with a robust domestic economy in the face of weakening economic conditions abroad. However, the feeling was the bank would not wait much longer, and a rate cut was just around the corner. The corner continues to be just out of view, although for the opposite reason: signs of weakness in Canada combined with a relative strengthening in the rest of the world.”