BENGALURU, Oct 17 Reuters The Bank of Canada will cut its overnight rate by 50 basis points on Oct. 23 as price pressures ease, according to twothirds of economists polled by Reuters who however failed to reach a consensus on where rates would be two months from now.

Headline inflation declined more than expected to 1.6 last month. Along with further signs of a slowing economy, financial market traders and most economists are convinced the BoC, which has already trimmed rates by a cumulative 75 basis points since early June, will go for a bigger 50 basis point cut next week.

Governor Tiff Macklem said last month the Bank wants to keep inflation close to the center of the 13 range and economic growth could weaken, raising expectations for faster reductions toward the neutral rate which neither restrains nor stimulates the economy.

But persistently high shelter costs, sticky core inflation and an unexpected fall in the unemployment rate last month suggest it still could be a close call.

Twothirds of economists, 19 of 29, in a Oct. 1517 Reuters poll forecast the Bank would cut rates by one halfpercentage point to 3.75. One expected a 50 basis point cut in an August survey.

There has been a lot of baseless onandoff speculation around the BoC39;s next move but it needed data to justify a call. We now have that. The BoC is likely to cut 50 bps next Wednesday…I39;ll also argue while it39;s our call, we disagree with upsizing, said Derek Holt, head of capital markets…