Canada Economic Growth Misses Forecasts, Backing Rate Pause

  • Bonds rally after numbers show economy is nearly a stall
  • Most economists believe BOC is done raising interest rates

Shoppers in the Toronto Eaton Centre on Black Friday in Toronto, Ontario, Canada. Preliminary data suggest GDP edged up 0.1% in August, as declines in the retail and oil and gas industries partly offset increases in the wholesale and finance sectors, Statistics Canada reported on Friday September 29, 2023.

Photographer: Cole Burston/Bloomberg
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The Canadian economy rebounded slightly last month but still saw little growth, backing a case for the central bank to keep rates on hold despite inflation remaining elevated.

Preliminary data suggest gross domestic product edged up 0.1% in August, Statistics Canada reported Friday in Ottawa, as declines in the retail and oil and gas industries partly offset increases in the wholesale and finance sectors.