Canada’s ratio of household debt to disposable income fell in the first three months of 2014, the second straight quarterly decline from a record on the slowest mortgage borrowing in five years.
Doug Porter, chief economist at the Bank of Montreal, said the Canadian dollar is overvalued by 5 percent to 10 percent given levels of commodity prices.
Canadian retail sales unexpectedly fell 0.1 percent to C$41.1 billion ($37.7 billion) in March on lower automobile and clothing receipts, adding to evidence the economy may be cooling.
Canadian consumer confidence continued to decline last week as an election campaign in the French-speaking province of Quebec raises the prospect of a referendum on independence.
Severe weather even by Canadian standards has cast a chill on the country’s economic rebound.
Job losses and trade deficits suggest the Canadian economy is slowing in the first quarter of this year with businesses failing to drive growth as policy makers predicted.
The time is right for Stephen Poloz to drop the Bank of Canada’s bias toward raising interest rates when he takes over as governor next month, according to Bank of Montreal’s Doug Porter.
"The reality is that the unemployment rate is still grinding lower."
- Doug Porter on Jul 21, 2014
BMO’s Porter Sees April Payrolls Rising 130,000