Canadian economy on the right track
Canada’s trade balance soared to a new record high in June. Canada exported $8.6 billion more during that month than it imported from the rest of the world. The country’s trade surplus has been on a general upward trend since the start of the year. Consumer prices roses 2.5% in June on a year-over-year basis, the same pace of increase seen in May.
Real GDP grew by 0.3% in May and upward revisions to prior months kept the level of output generally in line with expectations. Real growth is expected to be 3.2% by the end of this year and 3.6% by the end of 2005.
With job creation flattening out and a rise in interest rates in September, by the end of 2005, the overnight rate is expected to climb 200 basis points from 2.25% to 4.25%. The Canadian dollar is expected to end the year at $0.79 US and end 2005 at $0.76 US.
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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