Sept 27 Reuters Canada39;s main stock index was flat on Friday as gains in consumer and energy shares were countered by losses in mining stocks, while investors assessed domestic GDP and the U.S. data to gauge monetary policy outlook in both countries.

At 1141 a.m. ET 1541 GMT, the Toronto Stock Exchange39;s SPTSX composite index was down 5.63 points, or 0.02, at 24,028.2. The TSX was set to log weekly gains, having closed at record highs thrice this week.

The U.S. personal consumption expenditure index grew softerthanexpected 2.2 in August on an annual basis, building expectations of another outsized interest rate cut by the Federal Reserve.

Traders see another cut at the U.S. central bank39;s November policy meeting, with odds of a 50basispoint reduction at 51.3.

Canada39;s July gross domestic product grew 0.2, faster than analysts39; expectations. However, preliminary data for August showed GDP was essentially unchanged, indicating the economy was still weak.

The Bank of Canada has delivered three rate cuts this year and signaled larger reductions if the economy needs a boost.

It looks like Canada39;s inflation could drop below 2 in next month39;s report, said Douglas Porter, chief economist at BMO Capital Markets.

I think the chances of the Bank of Canada cutting rates by 50 basis points seem to be rising.

The potential for further policy easing by BoC and Fed weighed on bond yields in both countries. Canada39;s 10year benchmark yield fell 6 basis points….