Canadian investors are paring bets that central bank Governor Mark Carney will increase lending rates after growth in the second quarter slowed to almost one- third the pace of the January-March period and capped a month of weaker-than-forecast reports.
Economists are slashing forecasts for Canada?s government bond yields amid signals of a faltering economic recovery before the Bank of Canada meets next week to determine interest-rate policy.
Homeowners aren?t likely to face higher mortgage costs for at least the next month and some banks may even follow the Bank of Montreal in cutting new fixed-rate loans to compete for a dwindling number of buyers, specialists said.
Canada?s economy grew at a slower- than-projected 2 percent rate in the second quarter, almost one- third the pace of the January-March period, amid a widening trade gap and slower household and government spending.
TORONTO -- Canada's economy slowed more than expected in the second quarter as consumers tightened their pocketbooks, housing weakened and exports were squeezed by the weak American economy.
