Bank of Canada Officials Divided Over Long-Term Sustainability of Economic Rebound

The Bank of Canada's governing council was split over how sustainable the recent economic rebound is.

Minutes from their rate decision on July 15 show officials were growing more confident in the economy during the second quarter, following a year of flat growth.

The rebound was supported by higher global oil prices and signs of recovery in the housing market, as well as surveys of businesses and exports that suggested firms are adapting to tariffs and trade uncertainty from the United States.

The Bank of Canada expects real gross domestic product rose 2.5 per cent on an annualized basis last quarter, and is forecasting modest growth to continue through the second half of the year and into 2027.

While officials were 'confident' about the rebound in the second quarter, there was a range of views among governing council members about its sustainability beyond the near term.