Job growth steady and ‘close to consensus’ in Canada and U.S., but recession debate continues
“The debate over whether Canada is in a full-fledged recession will continue,” said Sherry Cooper, chief economist at Dominion Lending Centres.
That leaves Bank of Canada governor Stephen Poloz in a wait-and-see pattern on future interest rate adjustments, following two cuts since the start of this year as the impact of the oil-price plunge began to take its toll on economic growth. The next rate decision is set for Sept. 9.
“Certainly, the economy contracted in the first half of this year, but consumer spending and housing are still robust, which will likely continue until interest rates start rising,” Cooper said.