Despite the weak economic growth, the Bank of Canada still faces the prospect of raising interest rates.

RSM Chief Economist Joe Brusuelas stated that the Bank of Canada's decision to reshape its forward guidance on interest rates would be a wise move. The Bank of Canada sets interest rates to achieve a 2% inflation target, but due to rising energy prices, Canada's CPI may exceed the 3% threshold. However, GDP data shows negative growth for two consecutive quarters and three declines in the past four quarters. Brusuelas said the Bank of Canada will try to find a balance in the increasingly challenging policy outlook with the rate decision on Wednesday and the subsequent press conference led by the governor, which may at some point require raising rates in an economic downturn. Brusuelas stated that if energy price shocks prove to be persistent, the Bank of Canada may have to raise rates in the fall of this year.