The national inflation rate fell to its lowest level in three years in August, and slowed to the Bank of Canada’s target rate of 2 per cent.
That’s leading to speculation that another interest rate cut is coming.
Larry Short of Short Financial, a branch of iA Private Wealth, told Tim Powers on VOCM that a half point interest rate cut is possible.
He says if inflation drops below 2 per cent, it could trigger a recession “and that’s what the feds are trying to avoid.” Short says a number of banks have come out suggesting that a half point bank cut is coming in the next bank rate setting next month.