Analysts at Rabobank are expecting the Bank of Canada (BoC) to leave the policy rate unchanged at 1.75% on Wednesday, 4th September.

• “CAD OIS implies less than 10% chance of a cut.
• We maintain the view that the Bank of Canada is reticent to cut rates but will be forced to as a result of external headwinds and a weak domestic backdrop when looking below the headline numbers which paint a somewhat misleadingly robust picture.
• We now expect the BoC to begin its easing cycle with a 25bp cut in January before taking rates down to 0.50% by the end of 2020.”