Loading...
  • North American Outlook

    October 05, 2020 | 16:27

    Rocky Recovery Stays On Track

    profile photo of Sal Guatieri

    Sal Guatieri

    Director and Senior Economist
    Economics

    Sal Guatieri is a Senior Economist and Director at BMO Capital Markets, with over two decades experience as a ma... (Read more)

    profile photo of Sal Guatieri

    Sal Guatieri

    Director and Senior Economist
    Economics

    Sal Guatieri is a Senior Economist and Director at BMO Capital Markets, with over two decades experience as a ma... (Read more)

    More
    Key Summary

    While the U.S. recovery was impacted by the summer flare-up in virus infections, it continues to make headway. Meantime, Canada's economy is doing better than expected amid hefty fiscal policy support, but the recent upturn in infections highlights downside risks to the outlook.


    We raised our GDP forecast modestly, with smaller declines of 5.6% and 4.0% expected for Canada and the U.S. in 2020, followed by solid rebounds of 6.0% and 4.0% in 2021.


    The Fed's shift to average inflation targeting will likely keep policy rates historically low even when the jobless rate falls to low levels. The Bank of Canada is also expected to keep policy rates near zero until 2024.

    Less
    You might also be interested in