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Economic growth in Canada and the US continues to diverge

Deeper rate cuts in Canada than in US is consistent with the weaker state of Canada’s economy

Given the weaker state of Canada’s economy and with inflation sitting below target and decelerating quickly, a strong argument can be made that Canada’s policy rate needs to return to a neutral level much faster than the U.S. (Bank of Canada)
Given the weaker state of Canada’s economy and with inflation sitting below target and decelerating quickly, a strong argument can be made that Canada’s policy rate needs to return to a neutral level much faster than the U.S. (Bank of Canada)

By Carl Gomez
CoStar Analytics

November 4, 2024 | 2:40 P.M.

Economic growth in Canada appears to be losing momentum over the second half of the year.

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