Canada's Economy Shows Signs of Rebound, Central Bank May Stay on Hold

According to RBC, Canada's manufacturing and wholesale trade data is likely to confirm strong Q2 GDP growth, allowing the central bank to stay on hold. The data is expected to show a rebound in economic activity, which will support the Bank of Canada's decision to maintain its interest rates.

RBC notes that the recent improvement in business surveys and employment indicators suggests that the economy has regained momentum after a slowdown in Q1.

The bank's forecast is based on the assumption that the manufacturing sector will continue to drive growth, while the wholesale trade data will provide further evidence of the strength of consumer demand.