Bank of Canada's council divides on inflation risks, anticipating interest rate cuts.

The Bank of Canada's governing council is increasingly worried that high interest rates could cause inflation to dip below the target of 2%. Recent discussions revealed a split among members regarding inflation risks, with some concerned about potential economic and labor market weaknesses. Following inflation reaching 2% in September, forecasts suggest significant interest rate cuts ahead. CIBC predicts a two-point reduction from the current 4.25% rate by mid-next year, with the next announcement due October 23.