Markets are pricing in 87-per-cent odds of a 25-basis-point cut as of Thursday morning.

The latest inflation report from Statistics Canada was hotter than expected, but that has had little effect on expectations that the Bank of Canada will cut interest rates when it convenes next week.

The Consumer Price Index rose by 2.4 per cent year-over-year in September, up from August’s 1.9-per-cent reading and 0.2 percentage points more than analysts expected for the month.

Despite that, markets are pricing in 87-per-cent odds of a 25-basis-point cut as of Thursday morning. (There are 100 basis points in a single percentage point.) The Bank of Canada will make an interest-rate decision on Oct. 29, and such a cut would bring its headline rate down to 2.25 per cent and provide further relief t

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