Canada's economy grew at weaker-than-expected pace in Q1, raising odds of June BoC cut

Canada’s economy grew at a slower pace in the first quarter of the year than economists and the Bank of Canada expected, increasing the possibility that the central bank will cut its benchmark interest rate next week.

The data comes days before the Bank of Canada is set to make an interest rate announcement that could see the central bank cut rates for the first time since early in the COVID-19 pandemic. Money markets increased bets for a rate cut in June, from 66 per cent before the data was released to almost 80 per cent,

While the report missed expectations, Desjardins' senior director of Canadian economics Randall Bartlett noted "the details of the release were more positive than the headline suggests." "When combined with still-weak survey data and elevated business bankruptcies, we're still of the view that the Bank is likely to begin cutting interest rates at its upcoming June meeting."Fix or float is the big mortgage question as Bank of Canada rate cuts approachGas prices fall in Canada, led by British Columbia and Alberta

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