More economists are coming around to the view the Bank of Canada will have to cut rates this year, with a move as early as September looking increasingly possible.

A slowing Canadian economy, along with a deterioration in global demand and growing trade tensions, suggest a downward move from the central bank is likely to happen more quickly than currently accounted for, according to David Doyle, an economist at Macquarie Capital Markets in Toronto.

Implied odds show investors are assigning only a 20 per cent chance of a cut at the central bank’s next decision on Sept. 4. One rate cut by December is fully priced, as is one more cut by June next year. That may not be quick enough, especially with the country’s yield curve inverting to the point that historically has presaged central bank easing, Doyle said.