Canada’s economy recoiled for the second-straight quarter of 2015, knocking the country backwards into a technical definition of recession, Statistics Canada data reveals Tuesday.
Economists say data out this week is likely to show that Canada slipped into a technical recession in the second quarter, but the contraction should be short-lived.
The New York Fed’s president has cast doubt over whether the U.S. will raise rates in September.
Canada isn't in a recession, says the C.D. Howe Institute’s Business Cycle Council.
Investment managers are more positive about the U.S. economy, finds a Northern Trust survey.
On Wednesday, the Bank of Canada lowered its target for the overnight rate to 0.5%. In the past few weeks, economists were split on whether the BoC would make this move despite the obvious weakness in both the domestic and global economy, says Darcy Briggs, portfolio manager with Franklin Bissett Investment Management.
The Canadian dollar plunged Wednesday to a post-recession low after the Bank of Canada cut its key interest rate and lowered its economic forecast.
Federal Reserve Chair Janet Yellen sees a number of encouraging signs that the economy is reviving after a brutal winter and says if the improvements stay on track, the Fed will likely start raising interest rates later this year.
The Bank of Canada is lowering its target for the overnight rate to 0.5%. The bank rate is correspondingly 0.75% and the deposit rate is 0.25%.
Currency, more than commodities, may ultimately determine if the Canadian economy gets its groove back, according to a Russell Investments study.