Canada’s Gross Domestic Product (GDP) expanded by 3.9 percent during the first three months of the year bettering the 3.1 percent recorded in the fourth quarter of last year. This is the fastest rate of growth in the past year but Bank of Canada Governor Mark Carney is still expected to maintain the current one percent interest rate until later in the fall.
“Growth should cool off following the first quarter’s hot pace,†Emanuella Enenajor, at Canadian Imperial Bank of Commerce in Toronto, wrote in a note to clients before the report. “That would put less pressure on the Bank of Canada to hike rates in the near term.â€
