Canadian Economy Grows in July but Stalls in August, Raising Rate Cut Speculation

Statistics Canada reports mixed GDP results, prompting debates on whether the Bank of Canada will opt for a larger interest rate cut in October.

Canada's GDP grew by 0.2% in July, surpassing expectations, but remained unchanged in August, according to Statistics Canada.
The Bank of Canada's forecast for third-quarter GDP growth was 2.8%, but current data suggests it will be closer to 1%.
Financial markets are now giving slightly better odds to a 50 basis point interest rate cut at the Bank of Canada's October meeting.
Economists are divided on the necessity and size of the potential rate cut, with some advocating for a 50 basis point reduction.
The recent GDP data has highlighted ongoing economic challenges, including high interest rates impacting consumer spending and business investment.