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Agency: Information from the Bank of Canada indicates that it will maintain a steady pace of interest rate cuts

CointimeCointime2024/09/05 03:42
By:Cointime

Tony Stillo and Michael Davenport from the Oxford Economic Research Institute stated that the Bank of Canada's interest rate cut today did not completely abandon previous information, that is, interest rate cuts will be decided on a meeting-by-meeting basis, and it still emphasized concerns about rising inflation in housing and services. Analysts believe that this means that the possibility of a significant 50 basis point interest rate cut does not currently exist. However, as the Bank of Canada refocuses on downside risks, economic weakness and inflation slowing will prompt the Bank of Canada to advance with 25 basis point interest rate cuts in October and December. Such a stable pace should be able to bring the policy rate down to 2.25% before September 2025, which is the lower limit of the expected neutral rate of the Bank of Canada.

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