Canada's economic growth slowed in February, increasing by only 0.2% after a robust 0.5% in January, indicating a potential cooling phase that aligns with forecasts of upcoming rate cuts by the Bank of Canada. According to Statistics Canada, this moderation sets the stage for an annualized growth rate of 2.5% for the first quarter of 2024. Economists highlight that despite the economy's expansion, the pace is subdued due to the impact of high interest rates on spending. The Bank of Canada, under Governor Tiff Macklem, considers this a signal to possibly start reducing the policy rate from 5% soon, particularly if economic softening persists. This assessment is supported by the preliminary data for March, suggesting stagnant growth, reinforcing the possibility of interest rate cuts as early as June, contingent on forthcoming inflation figures.
 #VeritasMedia #CanadaEconomy #InterestRateCut #BankOfCanada #EconomicGrowth #GDPReport #InflationCanada #MonetaryPolicy #CanadianBusiness #EconomicOutlook #FinanceNews #RateCuts2024 #EconomicSlowdown #CanadianGDP #TiffMacklem #EconomicAnalysis #FiscalPolicy #EconomyUpdate #BusinessImpact #FinancialSector #MarketTrends