06:47 AM EDT, 10/25/2024 (MT Newswires) -- The Bank of Canada Wednesday lowered rates by 50bps to 3.75% and flagged additional easing in the coming meetings if the economy evolves broadly in line with the latest forecast, noted Societe Generale.

Canada's central bank forecasts gross domestic product growth to average 2.1% in 2025 and 2.3% in 2026.

That's in the United States ballpark and double the rates of the eurozone and the United Kingdom, which should rub off positively on the Canadian dollar (CAD or loonie), wrote the

bank in a note to clients.

The BoC expects inflation to remain close to the 1% to 3% target range over the projection horizon.

The CAD ranks among the better performers in G10 so far this month, down 0.4% vs the US dollar (USD) and up 0.1% versus the euro (EUR), stated SocGen.

For USD/CAD, the threat of an overshoot above 1.39 has so far been averted notwithstanding the widening of the Federal Reserve/BoC policy gap to 125bps, added the bank.