BANK OF CANADA STICKS TO ITS RATE CUT PATH – COMMERZBANK
As expected, the Bank of Canada (BoC) cut interest rates again yesterday by 25 basis points to 4.25%, Commerzbank’s FX strategist Michael Pfister notes.
BoC to cut rates by 25 b.p. at each of the two remaining meetings
“This means that it has now cut rates at the last three meetings. At the same time, it was clear between the lines that further rate cuts are likely at upcoming meetings. BoC Governor Tiff Macklem emphasised in his opening remarks that further rate cuts can be expected as long as inflation continues to moderate as expected. At the same time, the BoC now wants to see growth pick up.”
“The surprisingly strong growth figures in the second quarter did not change this, as they were mainly driven by government spending and investment, with little contribution from private consumption. In short, unless inflation picks up unexpectedly in the coming months, the BoC is likely to cut rates further. Our baseline scenario remains a rate cut of 25 basis points at each of the two remaining meetings this year.”
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.