MNI BRIEF:Canada GDP Shows Surprise Strength as BOC Mulls Hike

Canada's economy grew a strong 0.8% in February according to a flash estimate, building the case for a half-point rate hike from the central bank next month.

The GDP gain was broad based including manufacturing, natural resource extraction, hospitality services and construction. Statistics Canada's official estimate for January showed a 0.2% increase even in a month weighed down by a fresh round of Covid restrictions that triggered the biggest declines in hospitality services since the pandemic broke out. Output climbed 3.5% in January from a year earlier.

The BOC recently said it will act "forcefully" if needed and Governor Tiff Macklem said March 3 he wouldn't rule out a 50bp hike though his main message was a predictable "path" of tightening after the first rise in several years to 0.5% from a record low 0.25%.