Bank of Canada to cut rates on September 17, at least one more to follow this year: Reuters poll

Economic Outlook - The Bank of Canada is expected to cut its overnight rate by 25 basis points to 2.50% on September 17 due to a deteriorating labor market and weakening economic activity [1][3] - Economists predict at least one more rate cut in the next quarter, following a cumulative reduction of 225 basis points since March [1][3] Labor Market and Economic Activity - Official data revealed a loss of 65,500 jobs in August, raising the unemployment rate to a nine-year high outside of pandemic periods [2] - Economic activity contracted by 1.6% last quarter, influenced by U.S. tariffs on steel, aluminum, and automobiles, which has intensified expectations for rate cuts [2] Economists' Predictions - Nearly 80% of economists surveyed expect the Bank of Canada to implement a rate cut, a significant increase from 64% in a previous survey [3] - Only one of the big five Canadian banks, RBC, anticipates the Bank of Canada will hold rates, contingent on inflation data released prior to the meeting [5] Inflation Considerations - Headline inflation has remained within the Bank of Canada's target range of 1% to 3% since January 2024, but core inflation remains elevated [5] - A majority of economists predict the Bank of Canada will lower rates by at least 50 basis points this year, with some expecting cuts of up to 75 basis points [6]