Lenders Flip Bank of Canada Calls to Cuts After Ugly Jobs Report

Two of Canada’s largest lenders have changed their forecasts and now see the Bank of Canada cutting borrowing costs later this month after a worse-than-expected jobs report.

Bank of Nova Scotia and the Bank of Montreal say they expect a quarter percentage-point cut from the central bank at its next decision on Sept. 17. That would bring the policy rate to 2.5%, which is the consensus expectation of most of the country’s biggest lenders. Economists at Royal Bank of Canada still expect officials to hold borrowing costs steady.