Bank of Canada is expected to bring in a large interest rate cut this week

Financial markets and forecasters are betting on another jumbo interest rate cut from the Bank of Canada this week. 

Statistics Canada's latest job report tilted expectations in favour of a larger cut. 

The Friday report revealed the unemployment rate jumped to 6.8 per cent in November, up from 6.5 per cent a month earlier, as more people looked for work.

A half-percentage point interest rate reduction would bring the central bank's key interest rate to 3.25 per cent.

The Bank of Canada reduced its key interest rate by half a percentage point in October in response to inflation returning to target, but signalled the size of the next rate decision would be data-dependent.

Canada's inflation rate was two per cent in October. 

This report by The Canadian Press was first published Dec. 9, 2024.