The Globe and Mail reports in its Thursday, July 25, edition that the Bank of Canada did the expected (and the right thing) on Wednesday by trimming the policy rate for the second meeting in a row, to 4.5 per cent from 4.75 per cent. The Globe's regular guest columnist David Rosenberg writes that more relief will be coming. Yet again, the central bank stressed that the economy is operating with excess slack. The BOC sees real GDP growth of 1.2 per cent this year, which is about 100 basis points below the economy s long-term potential. When you model out where the overnight rate should be in such a period of economic slack, it should be closer to 2 per cent than the current 4.5 per cent. The BOC should have begun cutting rates last April. Mr. Rosenberg says the BOC is hardly done -- this is the early stage of what will prove to be more than just a partial unwind of the most severe tightening cycle since the John Crow era of the late 1980s. Bullish for the front and mid-part of the government of Canada curve and bearish for the Canadian dollar because the local economy is in a far weaker state than is the case south of the border, and Canada's central bank is simply going to have to do far more than the Fed.