Bank of Canada Rejects Recession Label for Economy’s Weakness (opens original article in a new tab)

Bank of Canada officials rejected the recession label for the economy's weakness, citing weak growth and labor market slack but noting that the economy was not in a full downturn. They held interest rates steady and emphasized the impact of energy prices on future decisions.

• Bank of Canada officials rejected the label of recession despite weak growth and labor market slack.
• The central bank noted a 0.1% annualized decline in real GDP in Q1, following a 1% drop in Q4.
• Policymakers held the policy rate at 2.25% and emphasized dependence on energy prices for future rate decisions.
• Inflation pressures were seen as generally contained with core inflation near the 2% target.