The Bank of Canada may be ready to trim much more fat from its overnight rate this week than previously expected, according to one economist.
The central bank is set to announce its decision on the target for the overnight rate Wednesday (Oct. 23). It currently stands at 4.25 per cent.
While two-thirds of economists polled by Reuters last week expect a reduction of 50 basis points, or 0.5 percentage points, there might be a reasonable argument to be made in favour of a 75-basis-point cut at tomorrow’s announcement in Ottawa.
In an Oct. 18 note to investors, Avery Shenfeld, managing director and chief economist with Canadian Imperial Bank
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