The Financial Post reports in its Tuesday edition that the Bank of Canada is scheduled to announce its next interest rate decision on Wednesday, with observers anticipating a cut of 50 basis points. The Post's Jordan Gowling writes that CIBC economist Avery Shenfeld says, "Markets have placed their bets on a 50-basis-point cut, believing that the Bank of Canada will deliver on that expectation." He says the BOC might even consider a cut of up to 75 basis points to indicate an "optimistic growth outlook for 2025." However, Mr. Shenfeld believes it is more likely that the BOC will stick to the 50-basis-point reduction. Since the summer, the BOC has been increasingly focused on downside risks to the economy. Headline inflation dropped to 1.6 per cent in September, down from the BOC's target rate of 2 per cent in August. Following the latest inflation report, five out of the six major Canadian banks expected a more substantial cut from the central bank this month. RBC economist Claire Fan says: "What the economy tells us is that inflation, if anything, is going to slow even more. The bank will probably continue to highlight this risk of not only inflation overshooting their target but undershooting their target."