{"id":2013515,"date":"2023-08-27T12:00:04","date_gmt":"2023-08-27T16:00:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause-2\/"},"modified":"2023-08-27T12:01:37","modified_gmt":"2023-08-27T16:01:37","slug":"canadian-economy-set-to-show-marked-slowdown-in-q2-giving-boc-cause-to-pause-2","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-2\/","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-2%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=2013515&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 \u200c \u200d   Canada\u2019s second-quarter GDP report, due on Friday, is likely to show \u2063a sharp slowdown \u2063in economic growth, a Reuters poll of economists showed, which could lead the Bank of Canada to pause its interest rate hikes \u2063despite <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.\">recent hotter inflation data<\/a>.<\/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>The GDP report will be the \u2063last major piece of domestic data before the\u200d Canadian central bank makes its next policy decision on Sept. 6. It is expected to show the economy\u2063 growing \u200bat a \u20641.1% \u2064pace in the second quarter,\u2062 down from 3.1% in the first three months of the\u200b year, and below the BoC\u2019s 1.5% estimate.<\/p>\n<p>That would be a \u2064relief to \u2063the market after the latest CPI report showed inflation rising above 3% in July, moving further away\u200d from the BoC\u2019s 2% target and raising expectations for another rate hike in\u2063 September.<\/p>\n<p>The BoC raised its benchmark rate to \u200da 22-year high of 5% in July. The central bank has said it\u2064 would study economic data closely before determining whether it raises interest rates further. <\/p>\n<p>\u201cWe think this print is very important for the BoC\u2019s (September) decision,\u201d said Carlos Capistran,\u2062 \u200ehead of Canada and Mexico \u2064economics \u200bat Bank of\u200c America Merrill \u200bLynch. \u201cThe BoC is in \u2064a data-dependent mode and\u00a0has not \u200cclosed the door to \u200dfurther hikes.\u201d<\/p>\n<p>Some of the expected slowdown in the \u200bsecond quarter could be down \u200cto transitory factors, such as wildfires, maintenance on energy projects and\u2062 a civil servants strike, which could mean that a \u2062preliminary estimate for July, due for release the same day as the quarterly \u2064data, will also be key for the rate outlook, say analysts.<\/p>\n<p>\u201cIf there are\u2062 clear signs the economy is slowing, that \u2064will likely give the BoC comfort it can hold the line at 5% for now and see more data,\u201d said Benjamin\u200b Reitzes, Canadian rates &#038; macro\u2064 strategist at\u2062 BMO Capital Markets.<\/p>\n<p>Money markets see \u2064a roughly 70% chance\u2063 that the BoC will \u2062move to the sidelines in September but\u2064 lean toward further tightening\u200b by the end of the year, which \u2062would result in interest rates peaking at 5.25%\u2063 in the current cycle. <\/p>\n<p>The July estimate follows recent preliminary data that showed a contraction in June activity and could be affected by a dock workers strike last month at ports along Canada\u2019s \u200bPacific coast.<\/p>\n<p>\u201cBecause we had that likely drop in GDP in June and then we\u2019ve got the port strikes in July, there is a reasonable chance we get a negative GDP print for \u200cQ3,\u201d said \u2063Stephen Brown, deputy chief North America economist \u200cat Capital Economics.<\/p>\n<p>The BoC has projected 1.5% growth for the third quarter, matching\u2062 its second-quarter\u200b estimate.<\/p>\n<p>Still, \u2064not every economist expects a pause. Some argue that  the composition of growth in the second-quarter data, including the split between internal and external demand, could also be\u2063 a consideration.<\/p>\n<p>\u201cIf domestic demand still \u2062looks too strong, led by a rebound \u2062in housing and consumer spending on\u200c services, and the July figure points to a decent start\u200d to Q3, the Bank of Canada may still choose to continue hiking interest rates at the September meeting,\u201d said Andrew Grantham, a senior economist at CIBC Capital Markets.<\/p>\n<\/p>\n<p>  (Reporting by Fergal Smith; \u2063Editing\u2062 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><strong>Hollywood is mourning the death of iconic game-show personality Bob Barker. Here\u2019s more on the stars legacy.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>This week has been filled \u200bWith\u200b major headlines in the U.S. and around the\u2063 world. One America\u2019s Rachel Acenas has more in our Week In Review.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Dr. Tabia Lee , a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ca-dei-director-sues-college-after-she-says-she-was-fired-for-asking-questions\/\" title=\"CA DEI Director files lawsuit against college for alleged termination due to questioning.\">black diversity equity inclusion\u200b director<\/a> at a California college, says she was \u2062recently fired for asking questions.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>U.S. District \u200dJudge Tanya Chutkan is holding a hearing on Monday, August \u206428th to determine a trial date in \u2063former President Trump\u2019s D.C. case.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>STOCKHOLM (Reuters)\u200c -Sweden\u2019s \u200bEricsson predicted on Friday intellectual property rights (IPR) licensing income of 11 billion\u200c Swedish \u200dcrowns ($1 billion) this year\u2026<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Hannah Lang (Reuters) -Cryptocurrency brokers, including exchanges and payment processors, would have to report new information on users\u2019 sales\u2062 and exchanges\u2026<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By\u200c Hannah \u2064Lang (Reuters) \u2013 Cryptocurrency brokers, including exchanges\u200d and \u2062payment processors, would have to\u2063 report new information on users\u2019\u200c sales and\u2026<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>By Aditi Shah, Aditya Kalra and Nikunj\u200d Ohri NEW DELHI (Reuters) -India is working on a new electric vehicle \u2064policy that would\u2026<\/strong><\/p>\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":2013516,"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-2013515","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\/2013515","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=2013515"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2013515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2013516"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2013515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2013515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2013515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}