1016 ET - Flat Canadian GDP in July and an advance estimate for modest growth in August support the view that the economy shifted into a lower gear in 3Q but continued to grow, Oxford Economics' Michael Davenport says. He expects that new U.S.-Canada tariffs, tighter financial conditions, and a shrinking population should further weaken growth for Canada in late 2026 and early 2027. Excess slack in the economy and a soft growth outlook lessen upside risks to inflation but Davenport notes that if oil prices remain elevated in the near term as expected, it will likely lead the Bank of Canada to lift interest rates in October and December as insurance against a more persistent pickup in underlying inflation.