Central Banks
Bank of Canada in Position to Accelerate Rate Cuts: Decision Guide
- Inflation lower than 2% target, growth well below estimates
- Bank is arguably ‘well behind the curve,’ says RBC’s Daw
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The Bank of Canada is likely to make a jumbo cut to interest rates, acknowledging that borrowing costs should fall more quickly as inflation wanes and economic growth stagnates.
Markets and economists expect policymakers led by Governor Tiff Macklem will cut the policy rate by half a percentage point to 3.75% on Wednesday, the first reduction of that magnitude since the Covid-19 pandemic.