Canada's economic growth levels out
Canada's economy created 53,100 new jobs in
December, 2003, well exceeding the consensus call of
10,000. However, the economy remained essentially
unchanged in November (1.5% year-over-year) from
October's downwardly revised pace in contrast to the
0.2% gain expected by markets.
Inflation accelerated in December, but mostly because
electricity refunds of December a year ago distorted the
starting point. December prices were up a scant 0.1%
over November and the overall index was up by 2%.
The Canadian dollar is expected to rise to 80 cents U.S.
by the end of 2004 alongside a weakening of the
U.S. dollar against most world currencies. The Bank
of Canada is expected to take its policy rate to 2.5%
in order to provide ongoing stimulus to Canada's
business and consumers. Forecasts are for real growth
of 1.7% and 3.5% in 2003 and 2004, respectively.
Bank Rate
Canadian Interest and Exchange Rate Forecast
These figures are based on the calendar year.
The actual rates are based on Bank of Canada rates.
The forecasts are from RBC Royal Bank®.
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