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Bank of Canada expected to deliver jumbo interest rate cut this morning- YAHOO FINANCE
The Bank of Canada is expected to continue loosening monetary policy in an interest rate announcement scheduled for 9:45 a.m. ET today. With inflation dropping to 1.6 per cent in September, economic growth below the central bank's expectations and "mixed signals" in the labour market, economists widely expect that the central bank will cut rates by 50 basis points. One economist says that the Bank may even surprise with a "mega move" and cut rates by more than 50 basis points. Another has suggested a 25 basis point cut is appropriate.
The Bank will also issue its quarterly Monetary Policy Report alongside its interest rate announcement. It’s expected that the central bank will adjust its forecast for GDP growth in Canada, as third quarter growth has so far significantly undershot the Bank's previous prediction of 2.8 per cent growth.
