The Canadian economy has been bullish for quite some time now. It was enjoying an early Christmas. The consumers were spending a lot for the festive season in Canada and this augured well for the retailers. But, there are chances for the interest rates to see a hike in January.
The wholesale trade and the retailer business saw an upswing in all Canadian provinces in October. The overall economic growth does not show a rosy picture despite a very good showing for the consumer in the 4th quarter.
Dolego, an economist, believes that the interest rate hike might not happen in January, but it would more than likely be introduced in March. Nick Exarhos, the CIBC World Markets economist, says that if there was a good GDP reading, then his call for an April rate hike was possible. But the reading was flat in October and hence believes that the fourth quarter growth will be lower than 2.5 percent. There is no need to be panic at this juncture.
Douglas Porter, the chief economist of the BMO Capital Markets, has cut down his GDP forecast from 2.5 for the fourth quarter to 2.0 percent. He too expects the interest rate hike to befall in March 2018.