Bank of Canada can cut rates again, but more is doubtful

Given the "fraught" economic situation and an unemployment rate of 7.1 per cent, up from 6.6 per cent at the start of the year, experts say the Bank of Canada has latitude to cut rates again. Photo by Adam Huras/Brunswick News/Postmedia files

Economists say the inflation data for September complicates the Bank of Canada’s interest rate decision next week, though they still think policymakers will cut again.

Bets for a rate cut on Oct. 29 slightly fell after Statistics Canada said year-over-year inflation hit 2.4 per cent in September, mostly due to a smaller decrease in gasoline prices and a rise in grocery prices. Year-over-year inflation in August was 1.9 per cent.

Many economists had called for inflation to accelerate in September, but not by as much as it did. The median estim