The Globe and Mail reports in its Thursday, Dec. 12, edition that ahead of Statistics Canada's November labour survey, market predictions for a rate cut by the Bank of Canada were evenly split between 25 and 50-basis-points. The Globe's guest columnists Jeremy Kronick and Steve Ambler write that with the unemployment rate, however, rising to 6.8 per cent from 6.5 per cent, expectations shifted toward a 50 basis point cut, which the BOC announced on Wednesday. Mixed economic data and uncertainty from the U.S. contributed to the cautious market sentiment. The guest columnists believe the BOC made the right move. They say market participants were hedging their bets because the economic data were sending mixed signals. Revised GDP data from Statistics Canada, published two weeks ago, revealed that average annual real GDP growth from 2021 to 2023 is 0.44 percentage point higher than earlier estimates. This suggests that economic output may be closer to full capacity, and any increase in spending from lower rates could lead to rising inflation. The GDP revision was partly due to increased business investment, prompting the BOC to raise its estimates of full economic capacity, resulting in less upward pressure on inflation.