According to few of the analysts, the most recent GDP numbers in Canada could mean a rise in interest rate earlier than expected. The Canadian economy went up in March by 0.5 per cent resulting to a low level in February, and increased in the first quarter by 0.9 per cent. As reported by Statistics Canada, the last quarter of last year had an increase of 0.7 per cent.
Derek Holt, economist at Scotiabank told Reuters; “If we continue to get growth numbers like this, absent trade policy risks, it’s going to be tougher for the Bank of Canada to avoid rate hikes at some point in the distance.”
Residential construction had a gain of 1.2 per cent which facilitated the construction growth of 0.8 per cent in March. Brokers and real estate gained by 2.5 per cent mostly as a result of BC and Ontario market, while the real estate and rental increased by 0.3 per cent.