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2025-09-17 23:22:40
[Capital Economics: The neutral tone of the Bank of Canada's policy statement suggests the bank does not necessarily expect another rate cut in October] The Bank of Canada's rate cut was not surprising given recent weak labor market data and easing upside risks to inflation, but Stephen Brown of Capital Economics said that the neutral tone of the Bank of Canada's policy statement suggests the bank does not necessarily expect another rate cut in October. He said that it was crucial that the bank abandoned the wording in its previous policy statement that "a reduction in the policy rate may be necessary if economic weakness puts further downward pressure on inflation and upward price pressures from trade frictions are contained." However, the economist said that if economic growth remains weak as expected and core inflation pressures remain under control, there is still a possibility of another rate cut this year.
