Nevertheless, the decline in oil prices will continue to weigh on the economy, with the Bank of Canada lowering its growth projection to 1.9% from 2.1% for the year. Looking ahead, the economy may continue to expand at a slower pace, supported by the central bank’s loose monetary policies – the BOC made a surprise rate cut in January and now keeps its lending rate at 0.75%. [Tepid Response by Canada ETFs to Surprise Rate Cut]

“The Bank of Canada already provided a tremendous stimulus jolt to the economy that won’t be felt for months or quarters down the road,” David Rosenberg, chief economist at Gluskin Sheff & Associates, said in the Bloomberg article.

iShares MSCI Canada ETF

For more information on Canada, visit our Canada category.

Max Chen contributed to this article.

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