Latest news with #MPR
Yahoo
3 days ago
- Business
- Yahoo
Canada's economy grows by 2.2% annualized rate in first quarter
TORONTO (Reuters) -Canada's economy grew faster than expected in the first quarter, expanding by a 2.2% annualized rate, data showed on Friday. Market reaction: CAD/ LINK: COMMENTS ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS "While headline GDP growth was solid in Q1, it was flattered by a surge in exports as companies looked to front-run potential US tariffs. Domestic demand was weak during the quarter, and monthly data point towards only slight upward momentum heading into Q2." "Early tracking for Q2 - assuming flat readings for May and June - points towards modest growth of 0.5% annualized. While that would clearly be below the economy's long-run potential, suggesting that slack is building up again, it would be better than the Bank of Canada's April MPR (Monetary Policy Report) scenarios." DOUG PORTER, CHIEF ECONOMIST, BMO CAPITAL MARKETS "I think the bottom line here is the economy held up better than most most had expected. We were looking for a decent first quarter but it was better than decent." "On top of that, and maybe the biggest surprise of all today, is the early reading on April is for a small gain following a similar size one-tenth (of a percentage point) increase in March. That's frankly quite impressive." "We can take out the details of the first quarter numbers - they're not nearly as strong as the headline would suggest. But still the overall number is nevertheless important here. There's no real sign of distress in the economy from the GDP figures and I think that's the most important message." "I think this heavily reduces the chances of the Bank of Canada cutting next week." ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATE STRATEGY AT TD SECURITIES "I would say the Q1 numbers being a little bit better than expected is a positive development. Some people may focus on that final domestic demand was effectively flat but a lot of that was due to softer government spending. We did see positive business investment and I think that is really important because that was a category we were looking at to suffer in particular due to uncertainty on the trade front." "We're not yet seeing the signs of a material hit to activity due to trade tensions and for that reason, I think it should be regarded as a positive surprise." "On the basis of the GDP data, it's difficult to make the case for a rate cut in June." "Looking forward, we still expect the economy to show some degree of weakness in the middle part of this year. We still look for growth to be essentially flat for Q2 and Q3, which we think will require additional policy easing from the Bank of Canada."
Yahoo
3 days ago
- Business
- Yahoo
Canada's economy charged ahead in the first quarter of 2025 as exporters sought to get ahead of tariffs
Canada's economy grew 2.2 per cent in the first quarter of 2025, Statistics Canada said on Friday. That maintained the pace recorded in the final quarter of last year and significantly exceeded estimates. In a note following the data release, CIBC economist Andrew Grantham cautioned that while real gross domestic product (GDP) growth was "solid," the number was "flattered by a surge in exports as companies looked to front-run potential US tariffs." Economists had expected the economy to grow 1.5 per cent on an annualized basis in the first quarter, according to consensus estimates published by RBC Economics. Grantham noted "weak" domestic demand in the quarter, with "only slight upward momentum heading into Q2." Real gross domestic product (GDP) increased 0.1 per cent in March, matching expectations. The quarterly growth came in above the Bank of Canada's forecasts. The central bank expected real GDP to grow 1.8 per cent on a quarterly annualized basis, according to its latest Monetary Policy Report (MPR). The Friday data also include a revision to fourth quarter 2024 growth, which at the time came in above expectations, adjusting the figure from 2.6 per cent to 2.1 per cent. This story will be updated. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android.
Yahoo
3 days ago
- Business
- Yahoo
Canada's economy grew 2.2 per cent in the first quarter of 2025: Statistics Canada
Canada's economy grew 2.2 per cent in the first quarter of 2025, Statistics Canada said on Friday, maintaining the pace recorded in the final quarter of last year. Economists had expected the economy to grow 1.5 per cent on an annualized basis in the first quarter, according to consensus estimates published by RBC Economics. Real gross domestic product (GDP) increased 0.1 per cent in March, matching expectations. The quarterly growth came in above the Bank of Canada's forecasts. The central bank expected real GDP to grow 1.8 per cent on a quarterly annualized basis, according to its latest Monetary Policy Report (MPR). The Friday data follow fourth quarter 2024 results that came in above expectations, driven by higher spending and increased business investment and exports. This story will be updated. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
Borneo Post
4 days ago
- Borneo Post
Record bid for Sandakan's First Historical Tree Trail
Teo (right) briefing the minister on the MPR – First Historical Tree Trail in Malaysia project at the English Tea House in Sandakan. Also present are the Ministry's Permanent Secretary Datuk Josie Lai (second left) and Deputy Permanent Secretary I Alesia Sion (left). SANDAKAN (May 29): Tourism, Culture and Environment Minister Datuk Seri Christina Liew has expressed full support for the proposed 'Malaysia Book of Records – First Historical Tree Trail in Malaysia' recognition for Sandakan. She said the recognition will definitely accentuate Sandakan's position as a popular travel destination on the world tourism map. 'There is no dearth of tourism hotspots in Sandakan, once known as The Little Hong Kong of Borneo. Today, it is acknowledged as the Nature City, and renowned as the 'Gateway to Borneo's Wildlife'. 'The number of historical trees found in the vicinity of the Agnes Keith House is amazing,' Liew said after touring the area during her recent visit to the district. Briefing the minister, President of the Sandakan Tourism Association, Teo Chee Kim said the 'Malaysia Book of Records (MBR) – First Historical Tree Trail in Malaysia' proposal is a joint initiative by the Sandakan Tourism Association and Sandakan Heritage Trail. 'We are working on this endeavour in collaboration with MBR, the Sabah Forestry Department, and Sandakan Municipal Council, among other stakeholders, to make the recognition status a reality. 'The Sabah Forestry Department in particular has rendered assistance in identifying the historical trees, some of which are more than 100 years old,' he said. Meanwhile, Teo in a presentation highlighted the key tourism attractions in Sandakan, namely the Sepilok Orangutan Rehabilitation Centre, Bornean Sun Bear Conservation Centre, Agnes Keith House Museum, Turtle Islands Park, Lower Kinabatangan Wildlife Sanctuary, Lankayan Island Diving Resort and Gomantong Cave.
Yahoo
21-05-2025
- Business
- Yahoo
Macquarie expects BoC rate cut delay on sticky core inflation
-- Macquarie economist David Doyle now expects the Bank of Canada to begin cutting interest rates in July, rather than June, reflecting stubborn core inflation in April's CPI report. 'These firm data lead us to push out the timing of our next expected cut to July,' Doyle wrote in a note to clients on Tuesday. While headline inflation slowed to 1.7% year-over-year and declined 0.2% on the month, helped by energy prices and the removal of the carbon tax, core measures told a different story. The average of trimmed mean and median CPI accelerated to 3.15% year-over-year, the highest reading since March 2024. 'This was the strongest result since December,' Doyle noted, pointing to the 0.37% monthly increase in core measures as evidence the BoC will want more clarity before moving. Following the data, market-implied odds of a June cut fell from 68% to around 30%. Macquarie still sees 75 basis points of easing from the BoC by year-end, but Doyle believes the central bank will now wait for the updated July Monetary Policy Report before making its next move. 'In our view, the BoC is likely to await more data and assess the outlook with a new MPR forecast in July,' he said. Doyle also highlighted a mix of inflation dynamics: food prices were up 0.5% month-over-month, while shelter inflation remained steady at 0.2%, supported by a 0.7% uptick in rent. He expects overall inflation to moderate unevenly in the months ahead, citing slowing wage growth and rising unemployment, now at 6.9%. Durable goods inflation reaccelerated, while semi-durables fell, and travel services saw a typical post-March rebound. Doyle flagged the potential for tariffs to keep pressure on goods prices, writing that 'upward momentum' may persist despite recent moderation in Canada's retaliatory trade response. Related articles Macquarie expects BoC rate cut delay on sticky core inflation Large U.S. Treasury holders in Asia saying "no" to "sell America" trade - Yardeni Retail earnings ahead, Nvidia CEO on U.S. chip controls - what's moving markets Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
