The chances of a half-percentage point interest rate cut by the Bank of Canada became more likely Tuesday after Statistics Canada reported the annual inflation rate fell to 1.6 per cent in September.

Economist Tu Nguyen of accounting and consultancy firm RSM Canada said she had expected the inflation rate to remain close to the central bank’s two per cent target, where it was in August, for a few more months.

Inflation in Canada continues to fall, leading to a likely interest rate drop by Bank of Canada{ai:summary}<p>The Bank of Canada may consider a half-percentage point interest rate cut following a drop in the annual inflation rate to 1.6% in September, as reported by Statistics Canada. This figure is below the central bank's target of 2%, which was met in August.</p><p>Economist Tu Nguyen had anticipated that inflation would remain near the target for a longer period. #economy</p>

Annual inflation falls to 1.6% in September, raises odds of 50-basis-point rate cut

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