Canadian growth beats central bank forecast

The growth of the Canadian economy during the first quarter of this year was stronger than the central bank expected official statistic released on 31 May revealed. The upside shock appears to have sealed the case for rate hikes later this year.

According to Statistics Canada, GDP expanded by 3.7% on an annualised basis during the first quarter of 2007. This is the fastest rate since the third quarter of 2005.

Two days earlier, after announcing a decision to leave interest rates unchanged at 4