The 0.4%m/m rebound in monthly GDP in February, which was slightly stronger than the 0.3% consensus estimate, will renew speculation that the Bank of Canada will resume raising interest rates soon, but we still think the Bank will remain on the side lines. Even with that rebound, first-quarter GDP growth was probably only between 1.5% and 2.0% annualised, admittedly a bit above the Bank’s 1.3% estimate, but slightly below the economy’s potential growth rate.
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