The Bank of Canada will likely cut interest rates by a full percentage point by the end of this year, a top economist said.
Randy Thanthong-Knight and Christine DobbyCharles St-Arnaud, chief economist of Alberta Central, joins BNN Blloomberg for insight on the rate roadmap for the Bank of Canada
He said that’s because the central bank’s goal is now to bring the key policy rate — currently at 4.25% — to the so-called neutral rate, where it neither stimulates nor restricts economic growth. In September, the consumer price index eased to 1.6%, undershooting the 2% target for the first time in more than three years. But taking out shelter costs, the rate fell to 0.4% last month, which is even lower than the central bank’s target range of 1%-3%.
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