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The Canadian economy will surely be put to the test over the coming months, as that dreaded recession looks to make some sort of appearance. Indeed, the Bank of Canada is holding off on rate cuts for now, but with a slight dovish tilt and a handful of cuts likely in the cards for the second half of the year, I’d argue that there exists a scenario we could see the economy stay out of a recession.
Indeed, the consumer has shown slight glimmers of resilience, even amid what remains of inflation. As inflation backs down and the rate cuts finally start coming in, I’d argue that many more Canadians may begin to start feeling better about spending a bit of money on those discretionary goods that just aren’t necessary when times are a tad sluggish. And if Canada can’t avoid a downturn? I’d look for the staple stocks to really flex their muscles as the inflationary climate moves into a…
