The Canadian economy is showing signs of recovery after two consecutive quarters of sub-1 per cent growth. We are currently tracking second quarter real GDP growth at close to 3 per cent while Canadian inflation has recently bumped up above the Bank's 2 per cent target. As long as those trends hold, a rate cut by the Bank of Canada is looking less and less likely, though there may be some pressure to follow the Federal Reserve should it choose to ease monetary policy.
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