Canadian Economy Misses First-Quarter Growth Forecast, June Rate Cut Bets Up

OTTAWA—The Canadian economy expanded at an annualized rate of 1.7 percent in the first quarter, missing forecasts, and real gross domestic product likely rose 0.3 percent on a monthly basis in April, data showed on May 31. The data prompted financial markets to increase bets on a 25 basis point interest rate cut next week to almost 80 percent from 66 percent earlier. The quarterly growth rate was slower than the 2.2 percent pace forecast by analysts in a Reuters poll, as well as the Bank of Canada’s (BoC’s) 2.8 percent forecast. Fourth-quarter GDP growth was revised to an annualized rate of 0.1 percent from 1.0 percent reported initially, Statistics Canada data showed....