The Financial Post reports in its Tuesday edition that economists and markets expect the Bank of Canada to cut its policy rate by a quarter point Wednesday. The Post's Jordan Gowling writes that Desjardins economist Jimmy Jean says, "I think they have a very strong case to cut interest rates." He says the market odds of a cut on Wednesday have jumped to 90 per cent, supported by recent data that show an economy grappling with weak growth and a deteriorating labour market. Canada's economy contracted in the second quarter, with GDP falling by 1.6 per cent. The labour market lost 100,000 jobs in July and August, pushing the jobless rate to 7.1 per cent, the highest in nine years outside of the pandemic. While Canada's headline inflation remained below 2 per cent in July, core inflation remains elevated about 3 per cent. Mr. Jean says the removal of the counter tariffs on U.S. goods will give further confidence for the BOC when it comes to concerns about an inflationary spiral or a stagflation scenario. Some economists, however, remain skeptical that a cut is a done deal. Royal Bank of Canada economists Nathan Janzen and Claire Fan say the economic data has deteriorated but no more than what the BOC was expecting.