CIBC predicts the Bank of Canada (BoC) will push for more aggressive rate cuts, and Canadians could see a significant drop as soon as December. In Ju…
CIBC predicts the Bank of Canada will push for more aggressive rate cuts, and Canadians could see a significant drop as soon as December.the interest rate from a longstanding 5 per cent to 4.75 per cent. That move was the first in more than four years, following six rate holds. Another quarter-point cut followed in July, bringing the rate to 4.5 per cent.
Canada is nearing its inflation target rate, with its Consumer Price Index at 2.5 per cet. Lowering mortgage rates would close the remaining CPI gap, bringing it to 2 per cent. "But with inflation soon to be vanquished and real interest rates still at restrictive levels, there's no logical reason for central bankers to move too cautiously to provide relief."
The report further noted that a more accelerated cut would help Canada stay out of a recession as the country’s labour market has shown weakness.
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