The weak economic backdrop means we still see a strong case for the Bank of Canada to follow its larger 50bp cut today, which took the policy rate to 3.75%, with another 50bp cut at the next meeting in December. We are in the minority, though, with markets pricing in less than a 10% chance of that move.
We will be discussing the Bank of Canada’s latest policy decision in a Drop-In at 12:00 ET/17:00 BST. (Sign up here.)
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