Bank of Canada rate cut ‘widely expected’: economists [Video]

The Bank of Canada is expected to deliver a dose of interest rate relief Wednesday when economists and market watchers predict the central bank will cut its overnight lending rate.

The central bank began its easing cycle in June when it reduced the overnight rate by 25 basis points to 4.75 per cent, the first cut in more than four years.

The last change before that to the overnight rate happened on July 12, 2023, when the bank increased the overnight rate by 25 basis points to five per cent.

The director and senior economist at BMO Sal Guatieri said tomorrow’s rate cut is widely expected by markets.

“It just seems like all the stars are aligning for rate cuts,” Guatieri said. “We know after the last rate reduction six weeks ago, the Bank of Canada basically told us that they are planning a series of rate reductions, albeit they …