By Canadian Press

BoC expected to lower interest rates again, with odds leaning toward larger cut

Dec 9, 2024 | 3:09 AM

OTTAWA — Financial markets and forecasters are betting on another jumbo interest rate cut from the Bank of Canada this week.

Statistics Canada’s latest job report tilted expectations in favour of a larger cut.

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.

A half-percentage point interest rate reduction would bring the central bank’s key interest rate to 3.25 per cent.

The Bank of Canada reduced its key interest rate by half a percentage point in October in response to inflation returning to target, but signalled the size of the next rate decision would be data-dependent.

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Canada’s inflation rate was two per cent in October.

This report by The Canadian Press was first published Dec. 9, 2024.

Nojoud Al Mallees, The Canadian Press