RBC’s McKay Sees Canada Rate Cuts Starting in Summer Months

Royal Bank of Canada Chief Executive Officer Dave McKay says interest rate cuts in Canada are likely to start within months, though he cautions they won’t give the economy an immediate boost.

“We’re on track for rate cuts this summer and into the fall,” McKay said in an interview aired Friday on BNN Bloomberg Television, noting this should help mortgage holders and other borrowers. “But don’t forget, even if rates come down by 100 basis points or 50 basis points, that’s still tightening. A 4% rate in the economy is still not an expansionary rate.”