Economy stronger, but central bank official hints rate hike not in cards yet

OTTAWA - The Bank of Canada's second in command says the country is riding an encouraging burst of economic momentum that's fuelling growth in 70 per cent of its industries.

But in a speech today, senior deputy governor Carolyn Wilkins is also hinting the central bank is not quite ready to hike its benchmark interest rate due to several lingering uncertainties.

In prepared remarks of her address, Wilkins says the broad-based surge in growth is something Canada hasn't seen since before the oil-price shock nearly three years ago.

Wilkins is crediting strength in consumer spending, the services sector and the housing markets for helping carry Canada over the last few years -- and she now points to expanding business investment, particularly in the energy sector, as another promising sign.

However, she also suggests the central bank will remain cautious when it comes to the interest rate as she underscores ongoing uncertainty surrounding U.S. economic policy, Canada's below-target inflation as well as employment weaknesses in wage growth and the number of hours worked.

Following months of improving economic indicators, a growing number of analysts have been saying it's increasingly difficult for the bank to hold back from raising its trend-setting rate. The bank's next scheduled rate decision is July 12.