After recent economic data showed a downward trend in consumer price inflation last month, one economist believes the Bank of Canada is likely to cut its policy interest rate this Wednesday.
Carlos Capistran, head of Canada and Mexico economics at Bank of America Global Research, joins BNN Bloomberg to discuss the outlook for Canada's economic stabishowed a downward trend in consumer price inflation last month, one economist believes the Bank of Canada is likely to cut its policy interest rate this Wednesday.
During an interview with BNN Bloomberg on Monday, Carlos Capistran, head of Canada and Mexico economics at Bank of America Global Research, said that “everything is just pointing to the Bank of Canada having the space to cut the policy rate again 25 basis points.” Last month, the Bank of Canada cut the policy rate for the first time in four years, and Capistran believes Canada’s central bank is poised to cut again. But the decision, he said, could be complicated by the U.S. Federal Reserve’s policy stance.
“One reason is they may be waiting for the Fed,” Capistran explained. “The rate in the U.S. and the rate in Canada usually move in tandem. So there is a limit to what the Bank of Canada can do and cannot do with respect to the Fed. But we believe that right now if you look at the business cycle in Canada … I think the Bank of Canada can really cut this time.
Anticipating the Bank of Canada to continue cutting rates, he added that a weakening dollar is “not really something we are expecting.”
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Canada expected to cut policy rate again on WednesdayAnalysts expect rate cut as inflation fell to 2.7 per cent in June, but questions remain on how large a trim to anticipate
Read more »
World Bank Cuts Thai Growth Outlook, Backs Central Bank in Keeping Rate SteadyThe World Bank trimmed its growth forecast for Thailand, citing uncertainties over the government’s $13.5 billion stimulus plan, but backed the central bank’s stance in keeping the policy rate steady.
Read more »
Economists say BoC could cut interest rates again in July if inflation keeps coolingEconomists are forecasting inflation slowed further in May, which would be welcome progress for the Bank of Canada after it cut its key lending rate for the first time in four years
Read more »
Economists say BoC could cut interest rates again in July if inflation keeps coolingThe Bank of Canada's decision to cut rates marked a major turning point in the central bank's fight against inflation, which reached a peak of 8.1 per cent in mid-2022.
Read more »
Economists say BoC could cut interest rates again in July if inflation keeps coolingEconomists are forecasting inflation slowed further in May, which would be welcome progress for the Bank of Canada after it cut its key lending rate for the first time in four years.
Read more »
Economists say BoC could cut interest rates again in July if inflation keeps coolingOTTAWA — Economists are forecasting inflation slowed further in May, which would be welcome progress for the Bank of Canada after it cut its key lending rate for the first time in four years.
Read more »