Updated at 10:14 a.m. ET/ 1514 GMT

By Nikhil Sharma

Nov 29 (Reuters) - Canada's main stock index hit a record high on Friday after data showed the economy grew at an annualized rate of 1% in the third quarter, raising expectations for a larger interest-rate cut by the Bank of Canada next month.

The S&P/TSX composite index .GSPTSE was up 83.72 points, or 0.33%, at 25,627.24 and was on track to hit its fifth straight monthly gain.

Data showed third-quarter gross domestic product growth was less than the BoC's projection of 1.5%.

The GDP came in below expectations at 0.1% on a monthly basis.

"It's showing a weaker than expected economy for Canada, which is not surprising for anybody living here," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.

"We're seeing a little bit of a positive bounce here" that reflects "there will be future rate cuts coming in Canada and perhaps even a larger one."

Traders see a 43.5% chance of a 50-basis-point cut at the December policy meeting, up from 30.7% seen earlier. 0#BOCWATCH

The central bank reduced borrowing costs by 125 basis points to 3.75% in its past four meetings in a bid to boost growth, after inflation cooled to reach its target range.

The TSX index was on track to hit its biggest monthly rise in a year, if gains hold, partly aided by the global stock market rally that followed Donald Trump's election victory.

The benchmark index was set to end in green for the week, despite initial investor concerns about Trump's pledge to impose a 25% tariff on imports from Canada and Mexico.

Among sectors, the materials sector .GSPTTMT rose 0.6% as gold prices gained due to a weaker greenback and geopolitical woes. GOL/

Energy Fuels led the index with a 4.6% gain.

Trading volumes were lighter than usual as the U.S. markets were closed for half a day.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas)

((Nikhil.Sharma@thomsonreuters.com;))