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Bank puts up high bar for 50bp cut

Following its third consecutive 25bp interest rate cut today, the communications from the Bank of Canada reiterated that further cuts are likely. We expect 25 bp cuts at the final two meetings this year. While Governor Tiff Macklem left the door open to a larger 50bp move, it seems the Bank would only choose that option if GDP growth and inflation both proved much weaker than the Bank forecasts.  

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