06:34 AM EST, 12/09/2024 (MT Newswires) -- The case for the Bank of Canada to deliver a second consecutive larger 50bps rate cut on Wednesday but lowering its policy rate to 3.25% was reinforced by the release on Friday of the latest Labour Force Survey (LFS) for November.

The BoC is slated to publish its policy statement on Wednesday, at 9:45 a.m. ET.

Friday's LFS revealed an outsized jump in the size of the labor force by 137,800 in November. It resulted in the unemployment rate rising by 0.3 point to a new cyclical high of 6.8%.

More evidence of a slacking labor market should encourage Canada's central bank to keep bringing rates down more quickly to its estimate of the new policy range between 2.25% and 3.25%, added MUFG.