Canada's second-quarter GDP grew at an annualized 3.4%, well above the Bank of Canada's 2.5% forecast, while unemployment fell to 6.4% in July and headline inflation rose to 3.0%, partly on Hormuz-linked gasoline prices. Despite that mix of hot growth and rising inflation, the Bank is still expected to hold its rate at 2.25% on September 2, a seventh consecutive hold. Two unresolved events land within days: Canada's own September 8 retaliatory tariffs and an August 28 Jackson Hole speech from a leading Fed contender.
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