The summary of deliberations of the Bank of Canada’s Oct. 23 interest rate decision shows policymakers considered making a smaller move. That was in part because some were concerned an unusually large half-point cut would be “interpreted as a sign of trouble,” creating expectations for additional outsized adjustments. (The Logic) 

Talking point: Concerns over a half-point cut were relatively modest as there was ultimately a “strong consensus” in favour of going bigger than usual. “Ongoing softness” in the labour market and lacklustre economic growth tipped the scales. Still, the note of hesitancy over making outsized cuts raises the odds that the October decision was a one-off and the next move will be a traditional quarter-point move. More cuts are nonetheless coming, as policymakers have shifted their focus to making sure the economy doesn’t slow so much that inflation drops below the two per cent target. The next policy announcement is scheduled for Dec. 11.