According to Jinshi Data, Canada's GDP grew 2.1% year-on-year in the second quarter, higher than the central bank's estimate of 1.5%. However, the decline in per capita GDP and weaker household consumption may prompt the Bank of Canada to cut interest rates for the third time next week.
Although Canada's economic growth was solid in the first half of this year, mainly due to population growth, households are under pressure from high borrowing costs. Andrew Grantham, an economist at Canadian Imperial Bank of Commerce, said that the weak economic momentum entering the third quarter provides a good reason for the Bank of Canada to continue to cut interest rates.