07:41 AM EDT, 10/27/2025 (MT Newswires) -- The Bank of Canada is expected to cut rates by another 25 bps at Wednesday's meeting, to 2.25%, and Bank of Montreal sees the policy rate ending the year at 2% -- that's consistent with BMO's long-standing dovish leaning.

The soft economy and job market will likely weigh heavily for policymakers, with an eye on risk management, than some stubbornness in inflation and a potential fiscal boost, noted the bank.

BMO stated it looks for the refreshed BoC Monetary Policy Report on Wednesday to go back to a base-case economic outlook. The bank added it's long been on the dovish end of consensus for the BoC in 2025, and another rate cut at this meeting would be consistent with that view.

BMO pointed out it looks for the BoC to again emphasize that policy will have to be agile in the meetings ahead.

The Canadian dollar (CAD or loonie) firmed slightly and has only run into some modestly choppy trading despite United States President Donald Trump threatening a 10% tariff increase on Canada in the wake of the weekend's TV ad drama against tariffs -- the currency starts Monday at $1.40/USD (71.4 US cents), according to BMO.