06:53 AM EDT, 10/23/2024 (MT Newswires) -- Bank of Montreal (BMO) said it expects the Bank of Canada to

step up the pace of easing with a 50bsp rate cut on Wednesday.

Both inflation and the economy are weaker than Canada's central bank expected. Money markets also lean in this direction, and there is even loose talk of a larger move, noted the bank.

How rare is a 75bps rate cut, asked BMO. Even during the 2020 pandemic shutdowns, the BoC kept rate cuts to 50bps,

although rifling off three straight ones within a month.

You need to go back to the financial crisis of 2008 to find the last time the BoC took out the 75bps bazooka, pointed out the bank.

The big guns are usually reserved for crises and recessions, and a sub-target inflation rate and 6.5% jobless rate don't exactly meet that threshold, added BMO.

Moving 50 bps sends a message that the BoC is serious about defending the 2% target but not panicking about the economy, according to the bank.