Bank of Canada expected to make another interest rate cut due to sustained easing of inflation.

Economists and market watchers anticipate the Bank of Canada to deliver another interest rate cut this week, following evidence that inflation is easing sustainably. Expectations of a rate reduction were heightened after the latest Statistics Canada inflation report revealed annual inflation was 2.7% in June, below the 2.8% markets had expected. This information has bolstered confidence in the Bank of Canada potentially making a second interest rate cut, in addition to the 25 basis-point cut announced last month.