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The
November monthly sales decline was less than the 0.5% drop
analysts expected. By volume, retail sales were down 0.4% in
November from October, Statistics Canada said.
In December, sales likely rose by 0.5%, according to Statscan's
flash estimate.
The positive estimate for December "suggests sales recovered...
as Canadian consumers continue to prove resilient in the face of
aggressive rate hikes," Shelly Kaushik, an economist at BMO
Capital Markets, said in a note.
The Bank of Canada has raised its benchmark interest rate at a
record pace of 400 basis points in nine months to 4.25%, and
said after its last increase that a decision to raise rates
further would be more data-dependent. The bank will publish its
next policy decision on Jan. 25.
Latest economic data shows Canada recorded a massive net gain of
104,000 jobs in December, while core measures of inflation in
the same period were little changed compared with the previous
month.
"Ongoing economic momentum will likely prompt the Bank of Canada
to raise rates another 25bps next week," Royce Mendes, head of
macro strategy at Desjardins Group, said in a note.
Money markets see a roughly 70% chance of a quarter-point hike
by the Bank of Canada next week.
(Reporting by Ismail Shakil and Dale Smith in Ottawa; Editing by
Frances Kerry)
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