Nearly 80% of economists predict BoC rate cut this week

The Bank of Canada will cut its overnight rate by a quarter point on September 17 as the labour market deteriorates and economic activity weakens, according to most economists in a Reuters poll, who also expect at least one more cut next quarter.

Canada’s central bank has faced growing pressure to resume easing after holding rates steady since March, following a cumulative 225-basis-point reduction - one of the most aggressive among its G10 peers.

Last week, official data showed the economy shed 65,500 jobs in August, pushing the unemployment rate to a nine-year high outside of pandemic periods.