The Canadian dollar edged down to an 11-week low against its U.S. counterpart on Thursday as investors bet the Bank of Canada would need to cut interest rates further to bolster a sluggish domestic economy.

The markets anticipate an oversized 50bp cut, as economic growth has been weak, wage growth remains high and inflation is heading lower. Inflation dropped to 1.6% y/y in September, below expectations and moving back below the BoC’s target of 2% for the first time in three years.

Today’s top headlines Big grocers being cagey about their inflation-busting plans, but many are already in place Theo Argitis: Return to normal is proving elusive for Bank of Canada Wave of job cuts ‘probably just the beginning’ at Canadian banks Banks are taking it on the chin,