Bank of Canada rate cut - the BoC isn't done, another 50bp of cuts in 2024, more in 2025

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Bank of Canada rate cut - the BoC isn't done, another 50bp of cuts in 2024, more in 2025

On Wednesday the BoC began its interest rate cut cycle, the BOC's first cut in four years:

• Bank of Canada lowers rates to 4.75% from 5.0%. Full statement from the Bank of Canada

• Q&A from Bank of Canada Press conference: Interest rate decisions are one meeting at a time

I posted this response earlier:

• Bank of Canada rate cut - expect a further 75bp of cuts in the second half of the year

Via TD now, analysts there are expecting another 50bp of cuts this year, the first of these to come in July and then a [pause.

• "The BoC didn't want to wait any longer to cut rates. The central bank saw its window to make a move and took it. This was made easier with market pricing moving towards a June cut over the last few weeks."
  
• "We expect the BoC isn't done. We have the central bank cutting twice more in 2024, before continuing the cutting cycle throughout 2025."

The Bank of Canada next meet on July 24.

USD/CAD update. I hovered my cursor over the obvious resistance level, which prints at 1.37433. Which is way too precise, but computers, what ya gonna do?

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Bank of Canada rate cut - the BoC isn't done, another 50bp of cuts in 2024, more in 2025

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