The Canadian economy grew faster than expected in the first three months of the year and likely expanded again in April, fuelling speculation that the Bank of Canada will raise interest rates again.
Statistics Canada reported Wednesday real gross domestic product grew at an annualized rate of 3.1 percent in the first quarter of 2023.
The latest data shows growth beat out the federal agency’s own forecast of 2.5 percent for the quarter. A preliminary estimate suggests the economy expanded by 0.2 percent in April after remaining flat in March.
The ongoing resilience in the economy is raising the odds of another rate hike, economists say, as the Bank of Canada heads toward its upcoming interest rate decision next week….