Canada Growth Stalls in July, Offering No Clear Signal for Bank of Canada Policy, Rosenberg Research Says

08:30 AM EDT, 09/30/2026 (MT Newswires) -- Canada's gross domestic product was flat in July, as expected, slowing annual growth to 1.4% from 2.1%, while Statistics Canada's 0.2% estimate for August points to third-quarter growth of around 1.8% annualized, above the central bank's 1.5% forecast, according to Rosenberg Research in a Wednesday note. Tuesday's data offers no clear signal for the Bank of Canada, with growth still running above the pace needed to close the disinflationary output gap, wrote Rosenberg Research. However, the figures predate renewed trade tensions with the United States and higher market rates, both of which pose downside risks, said Rosenberg. Overall, the GDP report provides no strong case for either a BoC rate hike or a cut, but points to weaker growth momentum ahead, added Rosenberg.