Canada’s economic growth slowed to a 0.6 percent annualized pace in the third quarter as consumer spending gains were offset by falling business investment and the fastest export decline since the end of the last recession.
Bank of Canada policy makers kept their key interest rate unchanged today and added language about a potential increase for the first time since September, saying they will raise rates “eventually” as the economy recovers.
The cost of living in Canada unexpectedly fell in August, and the 12-month inflation rate slowed on decelerating energy costs, which may ease pressure on the Bank of Canada to continue raising interest rates.
Canada’s inflation rate unexpectedly accelerated in May to the fastest since March 2003, sparking the biggest gain in the country’s currency this month as investors increased bets the central bank will raise interest rates.
Canadian capital markets will attract investment in 2012 due to the country’s relative stability, Margaret Franklin, chief executive officer of Kinsale Private Wealth Inc., said at a Bloomberg forum in Toronto.
Canadian employment rose almost six times faster than economists forecast in April, led by private- sector and full-time positions, creating the largest two-month increase in more than 30 years and leading investors to raise bets on higher interest rates.