Former Bank of Canada Deputy Governor Paul Beaudry expects policymakers to cut their key interest rate until it hits at least 2.75%, with the path beyond that point less clear.

On Wednesday, the central bank announced a jumbo rate cut—its fifth cut in a row since June—and signalled a slower pace for future decreases.

The Bank of Canada lowered its interest rate by 50-basis points to 3.25 per cent on Wednesday but signalled a slower pace of rate cuts moving forward.