Connect with us

Hi, what are you looking for?


Bank of Canada Interest Rate Cut Forecasts Pushed Back

Canada's Rate Cuts

Both CIBC and Desjardins have recently adjusted their forecasts for the Bank of Canada, indicating a shift towards a more cautious approach to monetary policy. The revised forecasts suggest that the anticipated interest rate cuts for this year may not be as aggressive as previously expected.

According to the updated forecasts, the Bank of Canada’s interest rate is now projected to end 2024 at 3.75%. This reflects a reduction of 25 basis points from the previous forecasts. The adjustment in the forecasts highlights the bank’s recognition of the need for a more measured approach to monetary policy in light of ongoing economic adjustments.

The decision to revise the interest rate cut forecasts comes as the Bank of Canada closely monitors the economic landscape. The central bank aims to strike a balance between supporting economic recovery and managing potential risks associated with inflation and financial stability.

Both CIBC and Desjardins, two prominent financial institutions, have cited various factors that have influenced their revised forecasts. These factors include the global economic outlook, inflation expectations, and the pace of economic recovery in Canada. The revised forecasts reflect a more cautious stance, taking into account the potential impact of these factors on the Canadian economy.

While the adjustment in interest rate cut forecasts suggests a more measured approach, it is important to note that the Bank of Canada remains committed to supporting economic recovery. The central bank has implemented various measures, including maintaining low interest rates and providing liquidity support, to help stimulate economic growth.

The revised forecasts also indicate that the Bank of Canada is closely monitoring inflation expectations. Inflation has been a key concern for central banks worldwide, and the Bank of Canada is no exception. By taking a more cautious approach to interest rate cuts, the bank aims to manage inflationary pressures and ensure price stability.

The economic adjustments that have prompted the revised forecasts include the ongoing impact of the COVID-19 pandemic, supply chain disruptions, and changes in consumer behavior. These factors have introduced uncertainties into the economic outlook and require a careful assessment of the appropriate monetary policy response.

It is worth noting that the Bank of Canada’s decision-making process is data-dependent and subject to change based on evolving economic conditions. The central bank will continue to monitor key economic indicators and make adjustments to its monetary policy as necessary.

Overall, the revised interest rate cut forecasts from CIBC and Desjardins reflect a more cautious approach by the Bank of Canada. The adjustments highlight the bank’s recognition of the need to balance economic recovery with potential risks. As the economic landscape continues to evolve, the central bank will carefully assess the appropriate monetary policy measures to support a sustainable and resilient recovery.

You May Also Like


The announcement followed a third unsuccessful attempt to free the stranded cruise liner. The Australia-based Aurora Expeditions, operator of the MV Ocean Explorer, stated...


In an era of increasing digitalization, the Human Machine Interface (HMI) takes center stage as the linchpin of our interaction with technology. It serves...


Apple: This event, to be live-streamed on and YouTube, has created a buzz, leading to speculations about significant updates to Apple’s Mac lineup.The...


The preview of Nintendo Switch 2 innovations excites gamers worldwide. This preview promises cutting-edge features, enhancing interactive experiences. Nintendo’s preview hints at a transformative...