The Bank of Canada today left its benchmark rate unchanged, at 0.5 per cent, saying it is too early to conclude that the economy is on a “sustainable growth path” despite a recent rebound in growth.
“During the rest of this year and into 2018 and 2019, growth in Canada is expected to moderate but remain above potential,” the bank said Wednesday.
In its latest monetary policy report, the bank said Canada’s economic growth in recent quarters has been stronger than it forecast in January, but characterized the expansion as “uneven.”
The central bank said investment in the oil and gas sector, coupled with strong consumer demand and residential investment, were key drives in the better-than-expected economic performance.
“In contrast, non-commodity business investment and exports remain weak, raising questions about the medium-term sustainability of the upturn,” the bank said.