🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Canadian Economy Grew by 0.1% in August

Published 10/31/2018, 08:37 AM
© Reuters.  The Canadian economy grew in August.

Investing.com - The Canadian economy expanded in August, according to official data released on Wednesday.

Canada’s gross domestic product, or the broadest measure of goods and services produced in an economy, increased 0.1% in August from the previous month, Statistics Canada said.

The result was above economists’ expectations for a flat reading.

On a year-over-year basis, the Canadian economy expanded 2.5% in August, compared to expectations for an expansion of 2.4%.

The data supported expectations for the Bank of Canada to continue raising interest rates.

The BoC hiked rates by a quarter point at its meeting Oct. 23, to 1.75%, its fifth increase since the summer of 2017, but still below its “neutral” rate of 2.5% to 3.5%.

The central bank has said that more hikes will be needed to reach its inflation target.

“Even with last week’s increase ... monetary policy remains stimulative. In fact, the policy rate today is still negative in real terms, that is, once you adjust for inflation,” Bank of Canada Governor Stephen Poloz told legislators on Tuesday.

“The policy rate will need to rise to neutral to achieve our inflation target,” he added.

The overall rate of inflation rose less than expected in September, with the consumer price index rising 2.2%, according to data released in mid-October. That was above the BoC 2% inflation target.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.