Recent data suggest that Canadian GDP growth in the second quarter was likely somewhat weaker than expected, according to Bank of Canada Deputy governor David Longworth.

In a speech today in Kingston, Longworth said “Weakness in overall global growth has been a major reason for the downturn in commodity prices, particularly energy prices, since mid-July.”

However, falling energy prices will mean that inflation may not be as big a problem as the central bank projected in July, Longworth noted.

The Canadian economy shrank by 0.3% in the first quarter.

The central bank’s next interest rate announcement is September 3.

The bulk of Longworth’s speech concerned the Bank’s of Canada response to the recent turmoil in financial markets.