Commenting on Friday’s Gross Domestic Report from Canada, “GDP growth was in line with market expectations, with the Canadian economy growing 1.3% (annualized) in Q3 and 0.1% m/m for September,” note TD Securities analysts. “However, details were more positive with domestic demand up 3.2%.”
Key quotes
“Business investment was a key driver to Q3 growth which will come as a relief to the BoC, given their concern with the global outlook. We don’t expect this to drive a hawkish pivot next week, but it should allow them some added comfort as they remain on the sidelines.”
“Rates: Muted reaction to an in-line number, and small beat on the YoY (1.60% vs 1.40%). At the margin this report could buy the BoC a bit more time to hold off on cutting rates, had the report been weak, that could have been a big deal.”
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