Bank of Canada Officials Split Over Economic Rebound Sustainability

The Bank of Canada's governing council was divided on the sustainability of the recent economic rebound when making their July rate decision.

The minutes from the meeting, released on Wednesday, show that officials were growing more confident in the economy during the second quarter following a year of flat growth.

Higher global oil prices and signs of a recovery in the housing market supported growth over the previous three months, while surveys of businesses and a recent pickup in exports suggested firms were adapting to tariffs and trade uncertainty from the US.

The Bank of Canada expects real GDP rose 2.5% on an annualized basis last quarter, and forecasts modest growth to continue through the second half of the year and into 2027.