Bank of Canada to cut interest rates in half by end of next year: Desjardins

By Noella Ovid
The Financial Post
February 24, 2024
Category: Finance & Economics
Region: Canada

Canadians can expect the Bank of Canada to start providing some respite this spring as the central bank “slowly but surely” moves towards its first interest rate cuts, says Desjardins Group. Desjardins is forecasting the first rate cut in June. …“We are seeing the damage caused by that very aggressive monetary policy,” Jimmy Jean said. …After the first cut, Desjardins expects the central bank will reduce rates by 25 basis points at every meeting this year and into 2025. …The Bank of Canada doesn’t have the same margin of error as the US Federal Reserve to keep rates higher for longer because “our economy is much more sensitive to interest rates,” said Jean. The U.S. economy had “a spectacular (year) in 2023, he said. …Canada’s economy, on the other hand, has already fallen into recession when viewed on a per-capita basis, said Jean.

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