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Bank of Canada expected to cut key rate despite mixed inflation, jobs data

On Wednesday, the Bank of Canada is expected to cut its key interest rate again after lowering it by a quarter point to 2.5 per cent in late September.
Earlier this month, Statistics Canada recorded a surprise jobs gain of roughly 60,000 in September, but economists Nathan Janzen and Claire Fan noted signs of labour market weakness and lower inflation expectations.
September's inflation report showed headline inflation accelerated to 2.4 per cent, with core inflation measures holding above three per cent, while the Bank of Canada signalled doubts about some core inflation gauges.
The Bank of Canada will have to decide before the Nov. 4 fall budget arrives, while BMO chief economist Doug Porter said the jobs market needs relief with unemployment at 7.1 per cent.
The central bank's illustrative scenarios underscore persistent trade uncertainty, while economists Nathan Janzen and Claire Fan urge fiscal policy to address sectoral pain from U.S. tariffs.

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