Latest monthly GDP data suggested that the Canadian economy barely awoke from its Q2 slumber in the third quarter. The flat reading for July, combined with an advance estimate for a mere 0.1% advance in August, leaves Q3 GDP tracking below a 0.5% annualized pace.

While supply constraints related to wildfires and the BC port strike have handcuffed activity recently, there are also signs that domestic demand is not particularly strong which could be enough to keep the Bank of Canada on hold despite recently higher-than-expected inflation readings.