The Bank of Canada cut its overnight rate to 3.75% on Wednesday, its lowest level since December 2022. Here’s what economists and investors are saying about it.
Stephanie Hughes, Randy Thanthong-Knight and Derek Decloet, Bloomberg NewsAllan Small of Allan Small financial group joins CP24 to share his perspective on the Bank of Canada rate cut.
The path of future rate cuts may be open for debate. But the destination is not. Even after today’s 50 beeper, the policy rate is still 100 basis points north of where the Bank’s own midpoint estimate of neutral resides. A policy rate above the neutral rate is totally incongruent for an economy in a state of lingering excess supply.The BOC sees low inflation and wants stronger growth and they’re getting ahead of it. The market allowed the bank to go 50 and the economy is weak enough to go 50.
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