07:01 AM EDT, 10/21/2024 (MT Newswires) -- The rise in Canadian yields by almost 20bps is counter-intuitive after inflation declined below the 2%-3% target range of the Bank of Canada, said Societe Generale.

The BoC will cut rates by at least 25bps at Wednesday's policy meeting but could opt for 50bps if it revises down its inflation forecasts, wrote the bank in a note to clients.

This could mean trouble for the Canadian dollar (CAD or loonie) and an excursion by the loonie into the upper 1.38 area, stated SocGen.