Canada Economy Grew 1.7% in First Quarter, Missing Forecasts
- Gross domestic product gain below BoC estimate of 2.8%
- Release prompts traders to boost bets on a June 5 rate cut
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The Canadian economy expanded less than expected in the first quarter, with weak inventory growth offsetting strong consumption gains, prompting traders to boost bets on the Bank of Canada cutting rates as early as next week.
Gross domestic product in the first quarter expanded at a 1.7% annualized pace, Statistics Canada reported Friday in Ottawa. That’s slower than a Bloomberg survey median estimate of 2.2% and the Bank of Canada’s forecast of 2.8%.