The Bank of Canada (BoC) kept its policy interest rate unchanged at 5.00% but suggested the possibility of rate cuts in the coming months. BoC Governor Macklem stated that more progress is needed for price stability before considering rate reductions. The BoC also adjusted its inflation and GDP growth forecasts. Market analysts anticipate rate cuts in June, July, September, and October, resulting in a total reduction of 100 bps in 2024. This could lead to a weaker Canadian dollar compared to the US dollar.
The Bank of Canada (BoC) held its policy interest rate steady at 5.00% at today's monetary policy announcement, but hinted at potential rate cuts in the future. BoC Governor Macklem stated that they need to see more progress towards price stability before being confident in lowering rates. The BoC also lowered its inflation forecasts while upgrading its GDP growth forecasts. Market analysts predict rate cuts in June, July, September, and October, totaling a 100 bps reduction in 2024.
This could lead to further weakness in the Canadian dollar compared to the US dollar
Bank Of Canada Interest Rate Rate Cuts Inflation GDP Growth Canadian Dollar US Dollar
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