As expected, Bank of Canada (BoC) drops their rate by 0.25%, for the third time this year. The labour market continues to slow. Wage growth, however, remains elevated relative to productivity. High shelter price inflation is still the biggest contributor to total inflation but is starting to slow. Inflation also remains elevated in some other services. Excess supply in the economy continues to put downward pressure on inflation. There are opposing forces on inflation which ‘Governing Council is carefully assessing’ .

Bank of Canada drops rate by 0.25%, 3rd time this year. Labour market slows, excess supply putting downward pressure. However, opposing forces elevated wage, high shelter costs, some other services. Next BoC meetings Oct 23, Dec 4. If assuming same pace, drop 0.25% x 2 by end year.