“But I’m not holding out that much hope.”Most economists also expect the Bank of Canada will hold its policy rate steady at 2.75% for a third consecutive decision later this week. As of Friday afternoon, financial markets were placing the odds of a quarter-point rate cut on Wednesday at just 7%, according to LSEG Data & Analytics. Bank of Canada governor Tiff Macklem has explicitly said monetary policymakers are being less forward-looking than usual in the trade war. If those tariffs are sustained, he argued, more rate cuts from the Bank of Canada will be warranted to cushion the economic hit. “We think, despite those measures being in the pipeline, the Bank of Canada will still in September have a valid reason to cut interest rates,” he said.