Weak GDP puts the timing of the next Bank of Canada rate hike in question

The Bank of Canada expects third-quarter growth of two per cent annualized, but economists say Friday's GDP data puts that at risk. BMO cut its call to 1.5 per cent from two.

CIBC's Andrew Grantham says the data support a pause at the Bank of Canada's December decision. RSM Canada's Tu Nguyen calls December or January a coin flip and leans toward a hike sooner.

Market odds of a Dec 9 hike

57 %

Financial markets put the odds of a rate hike on Dec 9 at 57 per cent as of Friday morning, according to LSEG Data & Analytics.

What's next

A slower economy could ease inflation pressures and reduce the need for more hikes, Grantham said, with plenty of data still to come before December.