Desjardins Group expects the BOC to raise rates in December despite soft GDP. Statistics Canada showed industry GDP flat MoM in August (market had looked for +0.2%); preliminary September data point to a contraction, implying Q3 annualized GDP near 1.3% versus the BOC’s prior 2% projection. Desjardins economist Tiago Figueiredo said August weakness reflected declines in public administration (census-related work winding down) and a pullback in wholesale activity, though wholesale sales remain ma

Desjardins Group expects the BOC to raise rates in December despite soft GDP. Statistics Canada showed industry GDP flat MoM in August (market had looked for +0.2%); preliminary September data point to a contraction, implying Q3 annualized GDP near 1.3% versus the BOC’s prior 2% projection. Desjardins economist Tiago Figueiredo said August weakness reflected declines in public administration (census-related work winding down) and a pullback in wholesale activity, though wholesale sales remain markedly higher on a 12-month basis. He argues BOC officials may still focus on emerging inflationary pressures, keeping the door open to a December hike.