08:56 AM EDT, 10/21/2024 (MT Newswires) -- MUFG said it expects the Bank of Canada (BoC9 to follow the Reserve Bank of New Zealand's lead and deliver a larger 50bps

rate cut this week.

Canada's central bank is scheduled to release its policy decision on Wednesday, at 9:45 a.m. ET.

The Canadian dollar (CAD or loonie) would weaken further if the BoC also signaled that it is open to another 50bps rate cut at the final policy meeting of this year in December, stated MUFG.

The Canadian rate market is currently priced more in favor of a 50bps cut this week followed by a smaller 25bps rate cut in December, pointed out the bank.