Wow. 75 basis points! I'm not sure whether to read this as the BoC trying to get ahead of the curve or if Marc Carney and Co. are seeing some really bad data on the horizon.
from the press release:
While Canada's economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity. The recent declines in terms of trade, real income growth, and confidence are prompting more cautious behaviour by households and businesses.
It will be interesting to see the forecast revisions in the Monetary Policy Update in January.
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