A New Economic Normal?

A growing number of long-range economic forecasts suggest we are heading for a new economic normal; slower economic growth and persistently lower interest rates.  The latest report from one of the country’s large financial institutions forecasts Canada’s growth to be 1.5%-2% for about the next 16 years.  That rate is 30-50% lower than the historical average set since the 1960s.

With this kind of slower growth it is unlikely to trigger inflation and as a result, unlikely to trigger interest rate hikes.