Forecasters more certain rate hikes are over as recession talk grows over GDP numbers

OTTAWA - The Canadian economy may have entered a technical recession as high interest rates weigh on consumer spending, preliminary data from Statistics Canada suggests. The federal agency released its August gross domestic product report on Tuesday, which shows the Canadian economy remained flat in the month. Meanwhile, a preliminary estimate is tracking a small contraction in the third quarter. The weaker-than-expected data is reinforcing forecasters' expectation that the Bank of Canada is done raising interest rates and sparking recession chatter. “I don't think they are going to hike interest rates again, given how weak the economy is,” said Andrew Grantham, CIBC's executive director of economics. August marked the second consecutive month where growth remained flat, and early datasuggests the economy continued that trend in September. For the third quarter, Statistics Canada's preliminary estimate suggested the economy shrank at an annualized rate of 0.1 per cent, which would fol