Central Banks
Bank of Canada Seen Cutting Rates Faster After Weak US Jobs Data
- Policy rate to reach 3.5% by January, 3% by mid-2025, BMO says
- Two economies deeply intertwined; divergence fears dissipate
Tiff Macklem, governor of the Bank of Canada.
Photographer: David Kawai/BloombergThis article is for subscribers only.
Markets are betting the Bank of Canada will cut at each of its remaining interest rate decisions this year as the labor market in the US looks to be loosening faster than expected.
The US unemployment rate unexpectedly rose to 4.3% on Friday, leading markets to price deeper cuts from the Federal Reserve in 2024. Some analysts, including at Citigroup and JP Morgan, are now expecting two half-percentage point bouts of easing from the Federal Reserve at its next two meetings.