Despite the anticipated rate cut, the central bank's overall stance is expected to lean towards the bearish side, particularly against the backdrop of declining inflation, further cooling of the labour market, and GDP running below the bank’s latest forecasts.

Canada's main stock index slipped on Wednesday due to falling commodity stocks, as investors evaluated a half-point interest rate cut by the Bank of Canada and anticipated further reductions in the future.

The Canadian Dollar (CAD) receded on Wednesday, backsliding another 0.2% against the US Dollar after the Bank of Canada (BoC) delivered a widely expected 50 bps rate cut. Rate traders are already pricing in a further double rate cut in December as the BoC grapples with Canada’s rapidly deflating economic landscape.

The Bank of Canada delivered a supersized interest rate cut Wednesday in response to the recent decline in inflation, bringing its key policy rate down by half a percentage point. With annual price growth now around 2%, the central bank says its job has shifted from lowering inflation to maintaining it around the inflation target.

Futures tied to Canada's main stock index fell on Wednesday, hurt by crude prices, ahead of the Bank of Canada's monetary policy decision that is expected to result in an outsized interest rate cut. December futures on the S&P/TSX index were down 0.