Bombardier Inc. T.BBD.A

interest rate cut will boost the share price

[bicente]

Canada’s economy grew at a slower pace in the first quarter of the year than economists and the Bank of Canada expected, increasing the possibility that the central bank will cut its benchmark interest rate next week.

Statistics Canada said real gross domestic product (GDP) grew 1.7 per cent at an annualized rate in the first quarter of the year, weaker than the 2.2 per cent that economists expected and short of the Bank of Canada's forecast of 2.8 per cent. In the first quarter the economy grew 0.4 per cent. Fourth-quarter GDP growth was also revised down, from an annualized rate of 1 per cent to 0.1 per cent.

Statistics Canada said in a release that higher household spending on services was a top contributor to the growth in the first quarter, offset by slower inventory accumulations.

 

Canada’s economy showed no growth in March, following a 0.2 per cent increase in February. Advanced estimates show GDP grew 0.3 per cent in April, due to increases in manufacturing, mining, and quarrying.

The data comes days before the Bank of Canada is set to make an interest rate announcement that could see the central bank cut rates for the first time since early in the COVID-19 pandemic.

 

the skies are blue my friends ..enjoy ..GLTA

[flamingogold]

They need to start the cuts to get ahead of the impending economic slowdown. Their biggest mistake since covid was waiting too long to hike which allowed inflation to get out of control. Back at that time when covid was still very much on our minds and rates were in the ditch, everyone was saying they can never raise rates. Fast forward, here we are again but on the flipside. Everyone saying they

[bicente]

I agree , a small cut would just calm the negativity ... No need to continue dropping rates after the 1/4 percent . We have a large number of big projects that were cancelled and the lots were put up for sale because of the uncertainty and the risk of higher rates or recession ...Home prtices have steadied and a little hike will not cause chaos buying , it will however give the people who are on

[stock4life48]

uh huh, and then the CDN dollar dumps hard against the USD...since everything we buy from fruit to TV's to gasoline to lumber expect another round of huge inflation Then there is Trudeau's decision to increase capital gains...start to cue the mass exodus of investment capital from this country along with jobs.

[BBDB859]

I think I agree with the outfall of reducing rates too soon. Though the real Inflation will come in higher Real Estate prices, if they reduce rates too soon here in Canada. I think Trudeau's time is already overdue. 

[stock4life48]

Trudeau needs to go, he is spending out of control, the economy is going to hell, and if we lower interest rates too quickly head of the US we could see a heavy drop in the USD.  Save $100 on your mortgage payment but spend an extra $300 in cost of living.  Yah, make sense to me As for BBD, do you think people who spend $27 to $78 million USD on a private jet care about about a 1/4 or a

[flamingogold]

Trudeau and Freeland are fiscally irresponsible and basically buying votes by showering people with money they don't have. But, let's not forget they do not set the interest rate. That is Tiff Macklem's job. Personally, the time is ripe for a 1/4 pt cut. We can afford a slight bump up in exchange rate at the benefit of priming the economy. Worse scenario is they wait too long to drop

[Mauserintime945]

Do you have the name of a person who could have the skills to replace Trudeau?

[flamingogold]

If your question was directed at me then my vote would be for Mark Carney if he ever decides to run.

[Mauserintime945]

Yes the question was directed to you, thanks for the answer and it make sense. Mark Carney, when he was Governor of the Bank of Canada did not have the reputation of a nice guy. The conservative parties will have to monitor their oil fields.