Economists cut Canada growth forecasts on floods, but see rate hikes on track

Investing.com | Nov 24, 2021 at 8:03 PM
  • Floods that wiped out bridges, roads and rail lines in British Columbia will hurt Canada’s economic growth and fuel inflation in the fourth quarter, but the Bank of Canada’s rate-hike timing is likely to remain unchanged.
  • Economists are clear the flooding will have a material impact on near-term gross domestic product forecasts, but there is considerable uncertainty about how fast growth could bounce back.
  • Money markets expect the Bank of Canada to start hiking rates in March 2022 with a total of five increases next year, but Stephen Brown, senior Canada economist at Capital Economics, questioned that pace.