Today’s sole Canadian data release was February building permits, which declined 9.3%. Still, economists don’t see the number affecting next week’s upcoming decision on interest rates by the Bank of Canada.

The slide in permits was larger than expected, following January’s big jump to a record $4.32 billion in permits. “The surge in residential permits to record levels in January led to a huge jump in housing starts in February, so the 14.2% drop in residential permits this month suggests that March housing starts will return to earth in tomorrow’s release,” says RBC Financial. The non-residential sector fared a bit better, posting a 1.9% drop.

“In all, though, the housing market remains strong. Permit issuance is up 10.4% from a year ago, with roughly similar annual gains in the residential and non-residential sectors (10.7% and 9.9% respectively). Even despite February’s decline, housing sector permits remain only about one percent below last year’s average level, and 2002 was a tremendous year for the Canadian housing market,” says RBC. “We expect the homebuilding sector to cool off gradually over the year as ongoing interest rate hikes bring the sector back from the boiling point.”

RBC predicts that the data is unlikely to have any impact on next week’s Bank of Canada rate decision. “We expect the Bank to hold off on rate hikes on the 15th due to the current elevated risk that the war further unsettles the U.S. economy and begins to spill across the border more forcefully than it has to date,” it concludes. “By June, however, we expect the Bank of Canada to be back to work pushing Canadian rates higher.”

There were no major U.S. releases this morning.