Canada’s economy shrank in the third quarter, according to Statistics Canada, adding fuel to the narrative that the Bank of Canada will need to lower interest rates soon to avoid a deep recession – but economists have varying views on when to expect cuts. “We’re not thinking the bank is going to move until the second half of next year,” David Watt at HSBC Canada said. Watt said he believes the Bank of Canada will be “cooler” on rate cuts because it may take some time for inflation to reach the bank’s target rate of two per cent. Douglas Porter, with BMO Capital Markets, agrees. …National Bank of Canada’s Stefane Marion expects the Bank of Canada to cut rates by around 100 basis points by the end of next year. Meanwhile, Tu Nguyen of RSM Canada predicts a rate cut could come as early as the second quarter of next year.