The Canadian economy grew at a 3.5% annualized rate in Q3, bouncing back from a 1.3% contraction in Q2 (first estimated as a 1.6% decline), and beating expectations for 3.4%.
Helping to boost Q3 were energy exports, which grew 6.1% after dropping 5.1% the previous quarter amid the wildfires in western Canada.
Encouraged by the report, BMO Capital hikes its GDP estimate for this year to 1.4% from 1.2%, but next year's estimate holds at 2%.
"The report is not going to influence rate policy that much," says RBC's Mark Chandler. "The [Bank of Canada] has said it would require a substantial shock to knock it off its current stance."
The loonie (NYSEARCA:FXC) is modestly lower vs. the greenback today, buying $0.7436.