07:23 AM EDT, 10/29/2025 (MT Newswires) -- The Bank of Canada is scheduled to release its policy statement at 9:45 a.m. ET on Wednesday, said Bank of Montreal (BMO).

The BoC should be announcing a 25 bps rate cut to 2.25%, the second reduction in a row, for a total of 275 bps since the cycle began, noted the bank.

For the doves, BMO points to economic growth, jobs, and Governor Tiff Macklem's dovish comments of late, or his warning that "it's not going to feel very good...."

For all the hawks out there, the bank presents September inflation, fiscal stimulus, and the trade deal, although first, both sides need to resume talking.

In any event, BMO's Chief Economist Douglas Porter stated: "To be clear, we have consistently been among the most dovish on the BoC outlook, calling for an eventual move to 2% on overnight rates. With the trade uncertainty unlikely to dissipate anytime soon and eventually carving further into activity, we continue to believe that it makes perfect sense for rates to go to the very low end of neutral, or even a bit below to support the economy through this difficult episode. We just happened to believe that sticky core inflation may somewhat slow the pace of cuts, but can't at all disagree with the direction."

United States President Donald Trump wrote on Truth Social "For those that are asking, we didn't come to South Korea to see Canada!" pointed out the bank.

That is weighing on the Canadian dollar (CAD or loonie), as it continues to hover around $1.40, according BMO.