{"id":219038,"date":"2025-10-23T00:07:37","date_gmt":"2025-10-23T00:07:37","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/219038\/"},"modified":"2025-10-23T00:07:37","modified_gmt":"2025-10-23T00:07:37","slug":"heres-what-economists-say-about-rate-cut-chances-after-latest-inflation-surprise","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/219038\/","title":{"rendered":"Here&#8217;s what economists say about rate cut chances after latest inflation surprise"},"content":{"rendered":"<p paraeid=\"{86d3d1c1-c480-44a1-8cc9-bd85e6514373}{119}\" paraid=\"23889912\">At CIBC Capital Markets, senior economist Andrew Grantham said that while headline CPI accelerated by more than expected, \u201ccore measures of inflation were just subdued enough to support a further 25-basis-point cut.\u201d He noted that <a href=\"https:\/\/www.mpamag.com\/ca\/mortgage-industry\/market-updates\/canadas-job-growth-in-september-puts-bank-of-canada-rate-cut-in-doubt\/552676\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">weak GDP growth and sluggish business sentiment<\/a> strengthen the case for additional easing.\u00a0<\/p>\n<p paraeid=\"{86d3d1c1-c480-44a1-8cc9-bd85e6514373}{130}\" paraid=\"1000927344\">Doug Porter, chief economist at BMO Economics, described the inflation surprise as making the BoC\u2019s decision \u201ca bit more interesting next week than previously expected.\u201d He said that while his team remains on the dovish side, \u201cgiven today\u2019s setback for core, we\u2019ll stay there for now,\u201d suggesting the data might delay rather than derail another rate cut.\u00a0<\/p>\n<p paraeid=\"{86d3d1c1-c480-44a1-8cc9-bd85e6514373}{136}\" paraid=\"1528614178\">Charles St-Arnaud, chief economist at Alberta Central, said signs of \u201cstickier than expected\u201d inflation could raise concerns for policymakers but added that \u201cgrowth is expected to be subdued\u201d and that his base case still assumes a 25-basis-point reduction.\u00a0<\/p>\n<p paraeid=\"{86d3d1c1-c480-44a1-8cc9-bd85e6514373}{142}\" paraid=\"2062969725\">Royce Mendes of Desjardins Capital Markets said that after a review of the data, \u201ca few volatile categories drove the headline surprise.\u201d Given the BoC\u2019s focus on underlying inflation, he said central bankers \u201cwill choose to cut rates again next week,\u201d citing continued economic weakness.\u00a0<\/p>\n<p paraeid=\"{86d3d1c1-c480-44a1-8cc9-bd85e6514373}{148}\" paraid=\"1518766068\">Abbey Xu of RBC Economics said inflation \u201ccontinues to run above the Bank of Canada\u2019s 2% target, but that was also true when the central bank cut the overnight rate in September.\u201d She expects one more cut next week, which would leave the overnight rate at 2.25%, the lower end of the BoC\u2019s neutral range.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"At CIBC Capital Markets, senior economist Andrew Grantham said that while headline CPI accelerated by more than expected,&hellip;\n","protected":false},"author":2,"featured_media":219039,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,93642,93641,1294,93643,56,54,55],"class_list":{"0":"post-219038","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-cpi-september-2025","10":"tag-economists-reaction","11":"tag-economy","12":"tag-inflation-canada","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/219038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=219038"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/219038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/219039"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=219038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=219038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=219038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}