The slump in oil prices has dramatically altered the outlook for economic growth and inflation. Following the Bank of Canada's surprise move last month to cut its policy rate to 0.75%, from 1.00%, futures markets now expect another quarter percentage point cut soon, possibly even next month. We think it's more likely that the Bank will wait until April. By then the Bank will have a better grasp of the potential fallout and whether the economy responded to the first rate cut.
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