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“While we do expect growth to simmer down somewhat in the second half of the year, we would readily allow that all of the economic surprises have been to the high side in 2017,” said Douglas Porter, chief economist with BMO Financial Group. “In what has become almost a seemingly monthly ritual in 2017, we are nudging up our call on Canadian GDP growth yet again to 3.1 per cent for the year and 2.5 per cent for Q3 — and would readily allow that there is some upside risk.”

Avery Shenfeld, chief economist of CIBC Capital Markets, said gains in incomes and a rise in the savings rate give Canadian consumers more room to spend during the third quarter. In July, the Bank of Canada rose its benchmark interest rate for the first time in seven years. Most economists expect Canada’s central bank to raise rates yet again this year, but Shenfeld said the strong GDP data leads CIBC to forecast that next hike might come as early as next week, rather than the fall or later.

“We were sitting on the fence, but are now leaning towards a September hike, with some cautionary words in the statement to remind Canadian dollar bulls that they will be very patient on further hikes,” Shenfeld said.

The markets still think the Bank of Canada will hold off on raising rates until its Oct. 25 meeting. Heading into Thursday’s GDP report, the futures market had pegged the chance of a Sept. 6 Bank of Canada interest rate increase at only 26.5 per cent. Shortly after the GDP figures were released, the odds of a September hike to 1.0 per cent from the current 0.75 per cent climbed to 33.4 per cent.