This article was last updated on April 16, 2022
Canada: 
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A rate-setting statement issued by the Bank of Canada Governor, Stephen Poloz, highlighted that Canada’s economic conditions are showing improvement but added that falling oil prices might hold it back. Quite expectedly, the central bank retained its trend-setting overnight interest rate at 1 per cent in its rate-setting announcement on Wednesday.
In a statement issued along with rate announcement, Poloz alleged that “Canada’s economy is showing signs of a broadening recovery. Stronger exports are beginning to be reflected in increased business investment and employment.” The Bank stated that “however, the lower profile for oil and certain other commodity prices will weigh on the Canadian economy.” However, the statement refrained from providing any specific analysis of the likely impact. It added that “the U.S. economy has clearly strengthened, particularly business investment, which has benefitted Canada’s exports.” Meanwhile, “growth in the rest of the world, in contrast, continues to disappoint. Oil prices have continued to fall, due to both supply and demand developments.”
Poloz suspected that the overall effect of these mixed developments would be that Canadian economy might head for a bit stronger growth than the central bank predicted in its quarterly forecast in October. Earlier, in the July-through-September period, the Canadian economy expanded at a faster-than-expected pace of 2.8 per cent on an annualized basis. However, Bank of Canada has stated that it expects overall growth for 2015 to come in at about 2.5 per cent before slowing gradually in 2016 to the 2-per cent range.
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