However, a few economists still maintain that it will be a close call, and it is possible that the central bank will hold the rate steady at 4.5 per cent, as it is faced with conflicting information.
Despite a robust domestic sector, the U.S. economy is still struggling. There is a weakness in the labour market, with the economy losing 13,000 jobs in June, and 9,900 jobs in May. There are also economic anxieties abroad.
The bank has already cut the overnight financing rate by 125 basis points this year, with its most recent cut being 25 basis points on May 29. Another 25-basis-point trim would set the rate at 4.25
per cent.
The Bank of Canada aims to promote the economic and financial well-being of Canada through monetary policy, central banking services, bank notes, and administering public debt.
The U.S. Federal Reserve cut interest rates for the sixth time this year in June, lowering the federal funds rate to 3.75 per cent, the lowest level in seven years.
