The contraction in second-quarter GDP was due to a large drag from net trade, which is unlikely to be repeated, but the downward revision to monthly GDP in Jun and preliminary July estimate showing only a muted gain leaves third-quarter GDP growth on track to be weaker than the Bank of Canada expected. That provides some support to our view that the Bank will soon resume cutting interest rates.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.