Interest rates: Bank of Canada expected to make large cut [Video]

OTTAWA –

Financial markets and forecasters are betting on another jumbo interest rate cut from the Bank of Canada this week, which would bring its key rate down to 3.25 per cent.

Statistics Canada’s latest job report tilted expectations in favour of half-percentage point cut.

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The Friday report revealed the unemployment rate jumped to 6.8 per cent in November, up from 6.5 per cent a month earlier, as more people looked for work.

The agency noted the unemployment rate reached its highest level since January 2017, outside of the COVID-19 pandemic.

CIBC Capital Markets chief economist Avery Shenfeld justified a larger cut by pointing to the fact that forecasters expect the central bank to bring its key interest rate down to three per cent …