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Canada GDP Growth 0.0% m-o-m AR (consensus 0.1%) in Aug-23

- Canada's GDP growth rate remained stagnant in August 2023, showing no change from the previous month.
- The current stagnation is below the one-year average by 0.06 percentage points and the long-run average by 0.20 percentage points, indicating potential underlying issues in the economy.

Bank of Canada: Oct-23

• The Bank of Canada maintains its policy interest rate at 5%, emphasizing a balanced approach amidst a shifting global and domestic economic backdrop.
• While there are signs of monetary policy's effectiveness in cooling price pressures, challenges persist due to energy prices and structural pressures in housing. The aim remains to reach a 2% inflation target by 2025.
• The bank is vigilant of various economic indicators and has expressed its readiness to adjust the policy rate if necessary, aiming to ensure long-term price stability in the Canadian economy.

Canada CPI Inflation 3.8% y-o-y (consensus 4.0%) in Sep-23

- Canada's CPI inflation decreased to 3.8% year-on-year in September 2023, marking the lowest growth since July and undershooting expectations for another 4.0% print.
- Monthly, the CPI inflation contracted by 0.1% in September 2023, suggesting a decline in prices compared to the previous month. The Canada Core CPI, excluding volatile components and indirect taxes, recorded a 2.8% year-on-year inflation rate, indicating moderate price increases.

Canada Unemployment Rate 5.5% (consensus 5.6%) in Sep-23

- Canada's unemployment rate in September 2023 remained stable at 5.5%, suggesting little short-term volatility in the labor market, contrary to expectations for a 0.1pp rise.
- The unemployment rate for this period was 0.30% higher than the one-year average, indicating ongoing challenges amid tight monetary conditions.