Boc To Cut Rates From July

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Boc To Cut Rates From July

Bank Of Canada (Boc) To Cut Rates From July 2024

According to a recent poll of economists, the Bank of Canada (BoC) is expected to cut the rates by 25 bps starting from July 2024. This will lower the interest rate in Canada to around 4.50% as the inflation continues to decline every month.

The Canadian economy is slowing down while unemployment is also edging higher. Given this, the BoC will likely cut the rates at least 2 times in 2024. However, some economists believe that the interest rate will likely reach 4.00% by the end of 2024.

Boc To Deliver Three Rate Cuts In 2024

For the most part, everyone agrees on a minimum of 3 rate cuts from the Bank of Canada in 2024. However, there's also a slight chance of a 4th rate cut by the end of 2024 as the US Federal Reserve is also expected to lower rates this year.

Every month's print continues to show a lower reading of Canadian inflation, a sign that more rate cuts are coming. When we look at the weak job market along with inflation, which is already in the 1 - 3% range of BoC, it makes sense to expect more rate cuts.

Another group of economists believe that the interest rate will be lowered to 4.50% in July 2024, based on the inflation data. A month ago, the Bank of Canada (BoC) lowered its policy rate, making it the first such instance in 4 years.

poll of economists also revealed that the easing cycle of the BoC will likely pause at the September meeting. However, it will resume once again in October and then in December. Over all, the Bank of Canada will deliver 2 rate cuts before the Fed's first rate cut and then start again in September.

An analyst from TD Securities commented on how the inflation has already dropped a lot lower than the BoC forecasts. That's why the BoC is highly likely to adopt an extremely dovish approach.

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