The Globe and Mail reports in its Saturday edition that Canada's economy grew faster than expected in July but lost momentum in August, falling below the Bank of Canada's forecast. The Globe's Mark Rendell writes that this could lead to a larger interest-rate cut next month. Statistics Canada reported a 0.2-per-cent gross-domestic-product increase in July, driven by strong retail and finance sectors, despite wildfires. However, the preliminary estimate for August showed no significant change, indicating a slowdown. Adjusting for rapid population growth, GDP per capita declined in both months, suggesting continued sluggish growth. BMO economist Douglas Porter says the Canadian economy "remains in a growth funk." Mr. Porter says in a note: "Canadian real GDP growth is tracking below 1.5 per cent in Q3, below potential and even below the modest pace of the past year. This means that even further slack is opening up in the economy, which will eventually put more downward pressure on inflation." Mr. Rendell notes that GDP data are a key input for the BOC ahead of its next rate decision on Oct. 2. On Friday, financial markets raised their bets on a half-point cut from the BOC in October, although the debate is far from settled.