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Scotiabank Changes Its Bank of Canada Rate Cut Forecasts

BY MT Newswires | ECONOMIC | 09/08/25 11:02 AM EDT

11:02 AM EDT, 09/08/2025 (MT Newswires) -- Canada's job market was hit hard in August and the odds that the Bank of Canada will resume easing at the Sept. 17 meeting went up, said Scotiabank after Friday's Labour Force Survey (LFS).

With materially fresh evidence, the bank's revised call is a 25bps cut next week, followed by another in October and then hold, it stated late Friday.

If the BoC is going to ease, then it's "totally pointless" to do it just once, added the bank.

Some 66,000 jobs were lost in August, while 106,000 were

lost in the past two months. Analysts can quibble about the drivers and other factors, but the BoC is under "significantly" greater pressure to resume easing, according to Scotiabank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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