The Bank of Canada is scheduled to announce its interest rate decision this morning, with most economists expecting a cut in the key rate.
Observers say slowing inflation and a weak economy justify a second straight cut by the central bank.
After a historic rise, the central bank lowered its key rate for the first time in June, bringing it down from 5% to 4.75%.
Governor Tiff Macklem signaled at the time that if inflation continued to slow, it would be reasonable to expect further rate cuts.
Last week, Statistics Canada reported that annual inflation fell back to 2.7% in June after accelerating again in May.
Weak economic conditions have also slowed labor market activity, pushing the national unemployment rate to 6.4 percent last month.
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