Canada GDP (Aug.)

The unchanged level of GDP in August and downgrade to July puts third-quarter growth on track to sharply undershoot the Bank of Canada’s estimate of 1.5%. That provides some support to our view that the Bank will cut interest rates by 50bp again at its December meeting, although the Bank may take some comfort from September’s apparent healthier outturn of a 0.3% m/m gain, which provides a strong handover to fourth-quarter growth.