Bank of Canada expected to cut rates again as trade turbulence persists

Bank of Canada Governor Tiff Macklem in September. Mr. Macklem recently warned that he expects tepid economic growth in the coming quarters.

The Bank of Canada is widely expected to cut interest rates again this week, with the fragile business climate and a new bout of trade uncertainty predicted to outweigh concerns about an uptick in inflation.

After months on the sidelines, the central bank resumed monetary policy easing last month, citing a “weaker economy and less upside risk to inflation.” It lowered the policy rate by a quarter-point to 2.5 per cent.

Since then, the Canadian economy has thrown off mixed signals. There was a rebound in employment in September and a larger-than-expected jump in inflation that month, to 2.4 per cent from 1.9 per cent.

But exports remain weak, GDP