Economists and market watchers are betting the Bank of Canada will deliver another interest rate cut this week amid mounting evidence that inflation is sustainably easing.
Expectations that the bank will lower its overnight lending rate when it makes its scheduled announcement Wednesday have been high since last week’s release of the latest Statistics Canada inflation report, which showed annual inflation cooled to 2.7 per cent in June.
The inflation reading was less than the 2.8 per cent that markets had been expecting and has helped to build market confidence that the Bank of Canada may be poised for a second rate cut, on top of the 25-basis-point cut it announced last month.
“I think it’s very likely the Bank of Canada cuts rates again next week. It wouldn’t really make sense from a …