The Canadian economy stagnated in August, and lower-than-expected growth is anticipated in the third quarter, according to data revealed by Statistics Canada (SC) this Thursday. The public agency reported that the preliminary estimate shows a growth of 0.3% in September. Additionally, SC revised down the economic expansion of July from 0.2% to 0.1%, indicating that the Bank of Canada’s projections for the third quarter will not be met.
"The Canadian central bank expected an annualized growth of 1.5%, but the data shows that the actual figure will be 1%," SC noted. This weakness in economic performance could lead the Bank of Canada to announce another interest rate cut on December 11, according to economists from the country’s financial institutions.
Recently, the Bank of Canada reduced interest rates by half a point, placing the key rate at 3.75%. This action represented the fourth consecutive cut since June. The monetary authority indicated its willingness to continue lowering rates if the economy does not align with its forecasts. According to the latest estimates, the country would grow by 1.2% in 2014, 2.1% in 2025, and 2.3% in 2026.
