OTTAWA, Dec 11 Reuters The Bank of Canada is poised to cut its key policy rate by another 50 basis points on Wednesday as weak unemployment numbers and poor growth underscore an economy that needs support, economists and analysts said.

A minority argued that reducing borrowing costs by 50 basis points two times in a row could create a sense of panic, suggesting that the economy is teetering.

Canada39;s economic growth came in lower than BoC39;s thirdquarter prediction and early indicators show that the GDP might also miss its fourthquarter target. Four rounds of rate cuts from 5 to 3.75 have not managed to stoke demand.

This comes at a time when inflation has continued to stay within the BoC39;s 1 to 3 target range and unemployment has matched a level not seen since eight years ago outside of the pandemic.

At the end of the day, the bank believes that the economy is operating in excess supply, and that it will operate in excess supply until 2026, said Dustin Reid, vice president and chief strategist, Fixed Income from Mackenzie Investments.

Why wait and not get to your neutral range? he said, adding that he expects the bank to cut by 50 basis points.

The neutral range is considered to be the band within which rates are just enough to not restrictive economic growth but not stimulate it either.

The BoC, which considers the neutral range between 2.25 and 3.25, slashed rates by a supersized half a percentage point in October, saying it needs demand to pick up so the…