MNI BRIEF: BOC Says Another GDP Contraction In Q3 Is Possible

Bank of Canada Governor Tiff Macklem said Wednesday GDP could contract again in the third quarter and while a small gain or loss is possible back-to-back declines would be more of a technical downturn than any deep recession.

The Bank's forecast is for “pretty modest growth” and while that doesn't feel good to Canadians he said "what we’re not forecasting is a sharp downdraft in the Canadian economy” with a big rise in unemployment that is typical of recession. (See: MNI BOC WATCH:2nd Cut As Auto Jobs Drop, Cool Enough Inflation)