0922 ET - The Canadian economy had a stronger start to 4Q than initially believed. GDP in October climbs 0.3% from a month ago, above expectations for a 0.2% advance, and output in September was revised higher. That's where the good news ends, as Statistics Canada says early estimates indicate GDP will decline in November. CIBC Capital Markets says 4Q GDP is tracking toward a 1.7% annualized increase, or just below the Bank of Canada's 2% forecast. That's growth below the economy's long-run potential, and sets the stage for further rate cuts in 2025, CIBC adds. It expects the BOC's rate-cutting cycle to end once the policy rate reaches 2.25%, or a point lower than its current 3.25% level. (paul.vieira@wsj.com; @paulvieira)
(END) Dow Jones Newswires
December 23, 2024 09:22 ET (14:22 GMT)
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