Markets Bet on Second Bank of Canada Interest Rate Cut Coming This Week

Economists and market watchers are betting the Bank of Canada will deliver another interest rate cut this week amid mounting evidence that inflation is sustainably easing. Expectations that the bank will lower its overnight lending rate when it makes its scheduled announcement on July 24 have been high since last week’s release of the latest Statistics Canada inflation report, which showed annual inflation cooled to 2.7 percent in June. The inflation reading was less than the 2.8 percent that markets had been expecting and has helped to build market confidence that the Bank of Canada may be poised for a second rate cut, on top of the 25-basis-point cut it announced last month....