MNI BRIEF: Canada GDP Shows Momentum Before BOC Decision

Canada's economy showed solid growth through the omicron wave with GDP climbing at a 6.7% annualized pace in the fourth quarter and a flash January estimate of 0.2% expansion, according to figures released the day before the central bank is expected to raise interest rates for the first time in more than three years.

Statistics Canada also reported Tuesday that GDP was little changed in December, matching the economist consensus that also called for 6.3% Q4 growth. While the BOC sees the expansion slowing to 2% in Q1, that view came in January when it signaled a path of rate hikes in an economy returning to full output, keeping inflation around 5% in the first half of this year.