The 0.1% m/m gain in October's GDP, which partly reflected a rebound in oil and gas extraction, suggests that the economy began the fourth quarter on a somewhat stronger footing. The pace of economic growth, however, still remains well below the 2% potential rate, which helps to explain November's very weak inflation figures. Overall, the data supports our view that the Bank of Canada's policy tightening bias is likely to be dropped early next year.
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