Bank of America Merrill Lynch told its clients Monday that the weakness in the oil industry spreading out to other industries will prompt a further interest rate cut by the Bank of Canada when it meets on January 20. In a note to investors the bank called for a cut of 25 basis points. With some of Canada’s largest banks having recently increased some mortgage rates a cut in interest rates may not cut the cost of mortgages, however it could mean that there are no more increases for now either. The consensus among economists is for the BoC to take no action on interest rates in the near-term.

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