Canada's Central Bank Expected to Cut Interest Rates by 50 Basis Points

Forex - Economists and analysts have indicated that the Bank of Canada is expected to lower its key policy interest rate by another 50 basis points today, highlighting a struggling economy in need of support due to weak unemployment figures and sluggish growth. A minority argued that cutting borrowing costs by 50 basis points twice in a row could create a sense of panic and suggest that the economy is on shaky ground. Dustin Reid, Vice President and Chief Strategist of Fixed Income at Mackenzie Investments, stated, "At the end of the day, the bank believes the economy is operating in an excess supply environment and will continue to do so until 2026. Why wait and not reach your neutral range?" He additionally noted that he expects the bank to implement a 50 basis point cut.