Canada’s economy grows but September rate cut a possibility

Slow growth: People walk past the Bank of Canada in Ottawa, Ontario. The central bank is expected to cut rates by 25 basis points at the remaining three meetings this year. — AFP

MONTREAL: Canada’s economy grew more than expected in the second quarter, but falling per-capita gross domestic product (GDP) and softening household consumption should keep the Bank of Canada on track to cut rates for a third straight meeting this week.

The country’s GDP rose 2.1% on an annualised basis from April through June, beating the median estimate of 1.8% in a Bloomberg survey of economists and the central bank’s forecast of 1.5%.