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Pimco Joins Chorus for Bank of Canada Rate Cut as Loonie Tumbles

  • Parade of weaker-than-forecast economic data adds to pressure
  • Traders pricing in higher chance of a third rate cut next year
Updated on

Pacific Investment Management Co., one of the world’s largest investors, joined a growing chorus in the financial markets saying the Bank of Canada may need to cut interest rates with the nation’s economy still struggling to recover from collapsing oil prices.

The Canadian dollar reached C$1.40 per U.S. dollar for the first time since 2004 Friday after wholesale trade unexpectedly contracted in October and core consumer prices rose less last month than economists forecast, continuing a run of worse-than-forecast economic data. Crude oil, until this year Canada’s biggest export, fell to a six-year low.