With the economy stumbling along slower than the Bank of Canada forecast just last week, analysts said there is no need to raise rates again from 5.0%, a 22-year high.
July GDP was revised to being marginally negative from an initial report of zero growth, Statistics Canada said.
This data reaffirms our view that the Bank of Canada is done raising rates for this cycle," Figueiredo said.
The central bank has said its previous rate hikes are sinking in.
The projected contraction in third-quarter annualized growth is far lower than the Bank of Canada (BoC) forecast last week.
Persons:
Chris Helgren, Tiago Figueiredo, Figueiredo, Macklem, Benjamin Reitzes, Reitzes, Ismail Shakil, Steve Scherer, Dale Smith, Jonathan Oatis
Organizations:
Roberts Bank, REUTERS, Rights OTTAWA, Bank of Canada, Canadian, Reuters, Statistics, BoC, BMO Capital Markets, Thomson
Locations:
Delta, British Columbia, Canada, Canadian, Statistics Canada, Ottawa