Small font size A Larger text size A Largest text size A

Bank of Canada says don't put much weight on GDP data showing technical recession

BY Reuters | ECONOMIC | 12:33 PM EDT

OTTAWA, June 1 (Reuters) - The Bank of Canada on Monday cautioned against putting too much weight on recent GDP data which showed two consecutive quarters of decline on an annualized basis.

Senior deputy governor Carolyn Rogers said while two quarters of annualized contraction in GDP did meet one definition of a recession, the April advance estimate showed the economy most likely rebounded.

"I think we need to be careful not to put too much weight on any one indicator," she told a parliamentary committee. (Reporting by Promit Mukherjee; editing by David Ljunggren)

More Fixed Income News

*--Atlanta Fed US Q2 GDP Nowcast Estimate 3.0% Gain Vs. Previous 3.8% Gain BY MT Newswires |ECONOMIC 01:18 PM EDT
Maryland dumps Moody's BY SourceMedia Bond Buyer |MUNICIPAL 01:17 PM EDT
US manufacturing activity at four-year high, supply constraints growing BY Reuters |ECONOMIC 12:44 PM EDT
Manufacturing Sector Expansion Hits 4-Year High, ISM, S&P Surveys Show BY MT Newswires |ECONOMIC 12:44 PM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article