How big of a rate cut will Bank of Canada make on Dec 11th?

The Canadian economy shrank on a per-person basis for a sixth consecutive quarter, extending an all-too-familiar trend of high interest rates stifling business investment and constraining growth.

Statistics Canada’s gross domestic product report on Friday said the economy grew at an annualized rate of one per cent in the third quarter, down from 2.2 per cent in the second quarter.

The figure is in line with economists’ expectations, but lower than the Bank of Canada’s October forecast of 1.5 per cent.

Growth on a per capita basis fell 0.4 per cent in the quarter.

Economists reacting to the latest GDP figures continue to be divided on whether the Bank of Canada will cut its key interest rate by a quarter or half a percentage point at its meeting next month.

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