Market Chatter: Bank of Canada Warns Against Overreacting to Techical Recession Indicator

03:20 PM EDT, 06/01/2026 (MT Newswires) -- Bank of Canada Senior Deputy Governor Carolyn Rogers cautioned against concluding the country is in a recession after recent data showed the economy contracted for a second consecutive quarter, Bloomberg is reporting Monday.

"Two quarters of annualized contraction in GDP does meet one definition of a recession. But simply the fact that you have to put the term 'technical' in front of it sort of tells you that you need to really look past that one indicator," Rogers told a parliamentary committee on Monday.

Bloomberg noted real gross domestic product fell by 0.1% on an annualized basis during the first three months of the year, Statistics Canada reported Friday. That follows a 1% contraction in the fourth quarter, a downward revision from a 0.6% decrease previously reported by the federal agency.

Rogers said employment data and leading indicators should also be taken into consideration, such as a flash estimate for industry-based GDP that suggested the economy grew by 0.4% in April. "I think we need to be careful not to put too much weight in any one indicator," Rogers told parliamentarians.

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