, but they see it coming in even lower at 0.5 per cent. Both are below the Bank of Canada’s estimate of 1.5 per cent.
“But we expect there will be enough signs of cooling demand to-date for the BoC to forego another increase in the overnight rate in September.”wildfires still raging in CanadaStephen Brown, deputy chief North America economist at Capital Economics, said the worst Canadian wildfires on record appear to be behind much of the recent weakness in GDP and as more areas are evacuated, growth will likely remain weak in coming months.
“The wildfires will make the Bank’s job harder as it will be tricky to determine the exact extent to which any weakness in the data is due to the wildfire disruption rather than the impact of high interest rates,” said Brown.
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