The Bank of Canada will make its latest interest rate announcement Wednesday, along with an updated outlook for the economy.
The central bank isn’t expected to change its key interest rate of 0.5 per cent, but economists and policy-makers will be scrutinizing its forecast for the economy.
Alberta wildfires that shut down oilsands production played a large part in the Canadian economy pulling back in the second quarter.
In its monetary policy report in July, the Bank of Canada predicted economic growth to rebound to a 3.5 per cent annual pace in the third quarter due to oil production and reconstruction efforts in Alberta’s oilsands region. Whether any of that momentum will be carried through into the fourth quarter is the question.
The forecast for growth for the year is at 1.3 per cent.