On the basis of this latest set of woeful GDP figures, the Bank of Canada must surely be considering following the Fed and abandoning any talk of further interest rate hikes at next week’s policy meeting. GDP increased by only 0.4% annualised in the fourth quarter, well below the consensus forecast at 1.2%. The details were even more disheartening. Without a 0.4% point boost from stronger inventory accumulation, real GDP would have been stagnant. The first quarter of this year will be little better.
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