Bank of America expects the Bank of Canada to cut the interest rate next June, citing core inflation that continues to decline and the labor market that has started to decline, the bank said:-
- We believe that the Bank of Canada can cut even if the Fed takes longer to cut interest.
- From our point of view, only an unexpected upward trend in core inflation or a significant increase in the fiscal deficit can derail the Bank of Canada's decision to reduce the interest rate this summer.
-Another risk that may hinder the reduction of interest is in the event of a significant rise in oil prices.
We expect the interest rate to reach 3.75% by the end of 2024.
