The Financial Post reports in its Saturday, June 1, edition that last Wednesday, the Bank of Canada closed the door on an interest-rate cut, surprising bond markets. The Post's Kevin Carmichael writes that the next day, senior deputy governor Carolyn Wilkins told a Calgary audience that Alberta's struggle to adjust to lower oil prices was not reflective of the broader national economy. Looming over the BOC's latest policy decision was the release of Statistics Canada's latest numbers which confirmed gross domestic product grew at an annual rate of 0.4 per cent in the first three months of 2019. That was weaker than a lot of Bay Street estimates, but essentially what the BOC had predicted when it updated its outlook in April.
That is a poor result. Beyond the headline, the news was mostly positive, suggesting that economic growth is set to rebound.
Household spending jumped 0.9 per cent, the strongest since 2017.
The Post says a sign of life is welcome, suggesting that this year's impressive run of hiring data is offsetting the burden of households' record debt load.
The other important indicator was business investment, which surged 9 per cent from the previous quarter and the most since early 2008.
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