- Stephen Poloz, BoC Governor
After falling to the lowest level in six months in February, Canada's wholesale sales rebounded in March, a positive sign for the Canadian economy following the fallout caused by steep decline in crude-oil prices. Wholesale trade receipts in March rose 0.8% to a seasonally adjusted 53.94 billion Canadian dollars, Statistics Canada reported. This marked the first rise in wholesale trade since December. Yet, the market consensus was for a 0.9% gain. Excluding the auto sector, wholesale trade also rose by 0.8%. In volume terms, wholesale sales grew 1.0%. On a 12-month basis, wholesale trade increased 5.6%.
The Bank of Canada said the economy possibly stagnated in the first quarter, and expected a partial rebound to unfold in the second quarter before more strong growth starting in midyear. However, Poloz reiterated that uneven economic performance of Canada's top trading partner, the US, is clouding the nation's economic growth outlook. Another uncertainty is whether the negative fallout from the precipitous drop in oil prices has dissipated. Given oil is Canada's top export, further oil-related weakness would affect the BoC's call for a partial bounce back in growth in the second quarter, BoC Governor Stephen Poloz said. Yet, Poloz acknowledged that The central bank's January's interest rate cut from 1.0% to 0.75% is seen working, as positive economic momentum continues to build.
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