{"id":2013510,"date":"2023-08-27T11:56:01","date_gmt":"2023-08-27T15:56:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause\/"},"modified":"2023-08-27T11:59:52","modified_gmt":"2023-08-27T15:59:52","slug":"canadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause\/","title":{"rendered":"Canadian economy expected to slow significantly in Q2, prompting BoC to pause."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcanadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2013510&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Fergal Smith<\/p>\n<p>TORONTO (Reuters) \u2013 \u2063    Canada\u2019s second-quarter GDP report, due on Friday, is likely to show a sharp slowdown in economic \u2062growth, a Reuters poll of economists showed, which could lead the Bank of Canada to pause its interest rate hikes despite recent hotter inflation data.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p><h2>The GDP report will be the last\u2062 major piece of domestic data before the Canadian central bank makes its next policy decision on Sept. 6.<\/h2>\n<p> It is expected\u200c to show the economy \u200bgrowing at \u200da \u20641.1% pace\u200c in\u200d the second quarter, down from 3.1% \u200bin the first three months \u200dof the \u2063year, and below\u200d the BoC\u2019s 1.5% estimate.<\/p>\n<p>That would be \u200ca relief to the market after the latest CPI report showed inflation rising above 3% in July, \u2063moving further away \u2063from the BoC\u2019s 2% target and raising expectations for \u2063another rate hike in September.<\/p>\n<p>The BoC raised its benchmark rate to a 22-year high of 5% in July. \u200bThe central bank has \u200csaid it would\u2062 study economic data closely \u200bbefore determining\u200c whether it raises interest \u200brates further. <\/p>\n<p>\u201cWe think this print is very \u2062important for the BoC\u2019s (September) decision,\u201d said\u2062 Carlos Capistran, \u200ehead of \u200cCanada and Mexico economics at Bank\u200b of America Merrill Lynch. \u201cThe \u2063BoC is in \u200ca data-dependent \u2062mode and\u00a0has not closed the door \u2063to further hikes.\u201d<\/p>\n<p>Some of the expected slowdown in the second\u2062 quarter could be down to transitory factors, such as \u200dwildfires,\u200d maintenance on energy projects \u200band \u2063a civil servants strike, which could mean that a preliminary estimate for July, due for release the same day as \u2062the quarterly data, will also be\u200b key \u2063for the rate outlook, say analysts.<\/p>\n<p>\u201cIf there are clear signs the \u200ceconomy is slowing, that will likely give \u200cthe BoC comfort it can hold the line at 5% \u2062for now and \u2064see \u200bmore data,\u201d said Benjamin Reitzes,\u2064 Canadian rates &#038;\u2064 macro strategist at\u200d BMO Capital Markets.<\/p>\n<p>Money markets see a roughly 70% chance that the BoC will move to \u200dthe sidelines in September but lean toward further \u2063tightening by the end of the year, which would result in interest\u200c rates peaking at 5.25% in the current\u200c cycle. <\/p>\n<p>The July estimate follows recent preliminary data that showed a contraction \u2063in June activity and could be \u200baffected by a \u2064dock \u200dworkers \u200dstrike last\u200b month at ports along Canada\u2019s Pacific coast.<\/p>\n<p>\u201cBecause we had that\u200b likely drop in GDP in June and then we\u2019ve\u200c got the port \u200dstrikes in July, there is a reasonable\u200b chance we get a negative GDP print for Q3,\u201d said Stephen Brown, deputy chief North America economist at Capital Economics.<\/p>\n<p>The BoC has projected \u20641.5% growth for the third quarter, matching its second-quarter estimate.<\/p>\n<p>Still, not\u2062 every economist expects\u200c a pause. Some argue that  the composition of growth in\u2063 the second-quarter data, including the split\u2064 between internal and external demand, could also \u2062be a consideration.<\/p>\n<p>\u201cIf domestic demand \u2062still \u200clooks too strong, led\u2064 by a rebound\u200c in housing and consumer spending on services, and the July figure\u200b points to a\u200c decent \u200dstart to Q3, the Bank of Canada may still choose to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/60000-real-estate-deals-were-called-off-in-just-september-alone\/\" title=\"60,000 Real Estate Deals Were Called Off in Just September Alone\">continue hiking interest rates<\/a> at the September meeting,\u201d\u200d said Andrew Grantham, a senior economist at CIBC Capital Markets.<\/p>\n<\/p>\n<p>  (Reporting by Fergal Smith; Editing by Denny Thomas and Jonathan Oatis)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/canadian-economy-set-to\/attachment\/condominium-and-office-towers-are-seen-on-the-mountain-backed-skyline\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/canadian-economy-set-to\/attachment\/a-cyclist-rides-past-the-bank-of-canada-building\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Hollywood is mourning the death of iconic game-show personality \u200dBob Barker. Here\u2019s more on \u200cthe stars legacy.<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>This week has\u200c been filled With major headlines in the U.S. and around the world. One America\u2019s Rachel Acenas\u200c has more in our Week In Review.<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>Dr. Tabia Lee , a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause\/\" title=\"Canadian economy expected to slow significantly in Q2, prompting BoC to pause.\">black diversity equity\u200b inclusion director<\/a> at a California college, says \u200bshe was recently fired\u2064 for asking questions.<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>U.S. \u200bDistrict\u200c Judge Tanya Chutkan is holding a \u200chearing on Monday,\u2063 August 28th to determine a trial date\u200d in former President Trump\u2019s D.C. case.<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>STOCKHOLM (Reuters) -Sweden\u2019s Ericsson predicted on Friday intellectual property rights (IPR) licensing income\u200c of 11 billion Swedish crowns ($1 billion) this year\u2026<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>By \u200bHannah Lang (Reuters) -Cryptocurrency brokers, including exchanges and payment \u2064processors, would have to report new information on users\u2019 sales and exchanges\u2026<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>By Hannah Lang (Reuters) \u2013 Cryptocurrency brokers, including exchanges and payment processors, would have to\u200b report new information on users\u2019\u200c sales and\u2026<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><h3>By Aditi Shah, Aditya Kalra and\u200b Nikunj Ohri\u2063 NEW DELHI (Reuters) -India is working on a new <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-evergrande-first-half-net-loss-narrows-to-4-5-billion\/\" title=\"China Evergrande's first-half net loss shrinks to .5 billion.\">electric vehicle\u200b policy<\/a> that would\u2026<\/h3>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Canada&#8217;s Q2 GDP report, expected on Friday, is anticipated to reveal a significant economic growth slowdown, according to a Reuters poll. This could potentially prompt the Bank of Canada to halt its interest rate hikes, despite recent inflation data indicating higher rates. The GDP report will mark the end of an era.<\/p>\n","protected":false},"author":66,"featured_media":2013511,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2013510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2013510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2013510"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2013510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2013511"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2013510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2013510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2013510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}