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The Bank of Canada is playing down any market expectations fuelled by the recent positive economic data.
The Bank of Canada is playing down any market expectations fuelled by the recent positive economic data.
(Chris Wattie/REUTERS)

For the Bank of Canada, the glass is half-empty

This morning’s Bank of Canada policy statement reads like a document from the desk of Eeyore. In short, the recent sunny data are just a brief break in the rain clouds – don’t get seduced into putting away your umbrella.

The central bank made it clear that its outlook for Canadian economic growth and inflation hasn’t been swayed one iota by the recent upturn in the country’s disturbingly low inflation (up 1.5 per cent year-over-year in January, the third straight increase and more than double the pace of three months earlier) and gross domestic product (up at a 2.9-per-cent annualized rate in the fourth quarter, the fastest pace in more than two years).