d794u87uh4x4qov01lhdqnar_media_dl_1.png Bloomberg

(Bloomberg) — Two of Canada’s largest lenders now see the Bank of Canada cutting borrowing costs later this month after a worse-than-expected jobs report.

Bank of Nova Scotia and the Bank of Montreal say they’re forecasting a quarter percentage-point cut from the central bank at its next decision on Sept. 17. That would bring the policy rate to 2.5%, which is the consensus expectation of most of the country’s largest lenders. Economists at Royal Bank of Canada still expect officials to hold borrowing costs steady.

The change in forecasts happened after a Statistics Canada report showed the country shed more than 106,000 jobs in July and August, and the unemployment rate jumped to 7.1%, up 40 basis points from a year ago.

The looseness

See Full Page