1. April’s Economy Shrank Slightly

  • Canada’s gross domestic product (GDP) dropped by 0.1% in April, with manufacturing and wholesale trade taking the biggest hits rbc.com+2reuters.com+2wsj.com+2.

  • A small decline of 0.1% in May is expected too, hinting that the economy is cooling off wsj.com+1reuters.com+1.

2. Inflation is Tame—But Some Pressure Remains

3. Trade Tensions Add Uncertainty

4. Mixed Data Leads to a Pause

5. What the Bank Might Do Next


In a Nutshell:

  • Growth: Slight contraction in April, expected dip in May.

  • Inflation: Tame overall, but core inflation remains firm.

  • Trade shocks: US tariffs are a wildcard.

  • Bank’s view: Staying cautious—no rush to cut, but ready if needed.


✅ Why We Shared These Sources

We drew from reputable news reports from Reuters, The Wall Street Journal, and more, to distill key facts while giving credit properly  wsj.com+3reuters.com+3realeconomy.rsmus.com+3wsj.com+3reuters.com+3reuters.com+3.

This ensures respect for copyright while helping you stay well-informed.


Your Takeaway

The Bank of Canada is likely to keep rates steady at 2.75% in July, watching carefully for signs of deeper economic weakness or inflation shifts. The next few months of data will be critical in deciding whether to cut rates later this year.