06:54 AM EDT, 07/24/2024 (MT Newswires) -- The Bank of Canada (BoC) is widely expected to trim another 25

bps from its policy rate on Wednesday to 4.50%, said Bank of Montreal (BMO).

Canada's central bank is scheduled to publish its policy decision at 9:45 a.m. ET, while a press conference is scheduled for 10:30 a.m. Wednesday.

It should also indicate more to come, although that will be decided

on a meeting-per-meeting basis, stated BMO.

If you had to pick just one reason to keep easing, it would be a rising

unemployment rate (even if mostly due to a surging workforce), which suggests "the economy is still operating in excess supply," pointed out the bank. You need to go back to the start of this century for a situation akin to today when Canada faced rising joblessness but skirted a full-blown recession.

The policy rate started at a higher level back then and was eventually chopped by 375 bps in just over a year. Rates likely won't fall nearly as much or as fast this time around but should still end up at a "neutral-ish" 3.0% by early 2026, added BMO.