Canada’s economy grew 0.2 per cent on a monthly basis in July, Statistics Canada said on Friday, more than analysts had expected. However, quarterly growth is still tracking well below the Bank of Canada’s forecast, leaving the possibility of a jumbo-sized rate cut on the table.

While July’s gross domestic product (GDP) growth was more than the 0.1 per cent rate analysts had expected, advance estimates show GDP was unchanged in August, as increases in oil and gas extraction and the public sector offset decreases in manufacturing, transportation and warehousing.