The Financial Post reports in its Wednesday edition that Statistics Canada is predicting gross domestic product growth will be flat in March after data released Tuesday showed the Canadian economy slowed more than expected in February. The Post's Gigi Suhanic writes that on a month-over-month basis, GDP was up just 0.2 per cent in February, missing analyst estimates for growth of 0.3 per cent and the data agency's advance estimate of 0.4 per cent. Year-over-year, GDP grew 0.8 per cent, well off expectations for a 1.1-per-cent expansion. "The deceleration in February and March signal this rebound is unlikely to last," Mark Ercolao, an economist with TD Economics, said in a note, referring to estimates for annualized growth in the first quarter of 2.5 per cent. "This should encourage the Bank of Canada, which needs to make sure inflation is on a sustainable path back to two per cent," Mr. Ercolao added, noting that markets are currently split between a first cut in June and July. TD says the Bank of Canada will move in July, "as it will give the bank slightly more time to ensure that inflationary trends are durable." A possible rate cut will ultimately depend on the next consumer price index report due on May 21.
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