June 2017 Commentary

During the first half of 2017, a divergence between growth and stock market performance has developed in Canada. Canadian economic growth is leading G7 countries while the TSX is one of the worst performing indices YTD. The latest Bank of Canada business outlook survey (summer 2017) points to increased confidence among CEOs and shows that positive business prospects are increasingly widespread across regions and sectors. The upbeat report provided the evidence Mr. Poloz required to conclude that the stimulus provided via two rate cuts during the energy downturn have “done their job” and should be taken away...

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