Canada: Real GDP expands by 1.1% in February vs. 0.8% expected

The Canadian economy expanded at a MoM pace of 1.1% in February, faster than expected.
The loonie did not react to the latest data, even though it will underpin BoC tightening expectations.

Joel Frank Independent Analyst

Canadian real GDP expanded at a pace of 1.1% MoM in February, according to the latest data release by Statistics Canada on Friday, a faster pace of growth than the 0.8% forecasted by economists. That marked an acceleration in the pace of economic growth in Canada after January's 0.2% rise in real GDP.

Market Reaction

Though the robust growth data will increase confidence at the BoC that it can get away with rapid rate hikes given underlying economic strength, the loonie has not seen any reaction. USD/CAD continues to trade close to session lows just under the 1.2750 mark, with traders more focused on the latest batch of mixed US economic data.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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