Bank of Canada Expected to Announce Significant Rate Cut

Economists predict a substantial interest rate reduction as inflation cools and economic growth falters.

Multiple economists anticipate the Bank of Canada will announce a 50-basis-point rate cut on Wednesday, with some suggesting a 75-basis-point reduction could be considered.
Canada's inflation rate has dropped below the central bank's target, reaching 1.6%, prompting concerns about potential deflation.
The Canadian economy's growth has been weaker than expected, with GDP tracking closer to 1.5% rather than the projected 2.8%.
Despite recent job gains, the Canadian labor market shows signs of weakness, with the unemployment rate rising outside the pandemic period.
The U.S. Federal Reserve's recent rate cuts and the upcoming U.S. presidential election outcomes could influence the Bank of Canada's monetary policy decisions.