Interest rate cuts unlikely until the second half of 2024: TD Economics - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 50%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

As the Canadian economy has experienced a hotter start to the year than anticipated, TD Economics said it now does not expect interest rate cuts until at least the second quarter of next year.

Higher levels of economic growth and rapid inflation around the world are pushing interest rates above expectations from the previous quarter, TD Economics said in its, released Thursday. The report said elevated levels of inflation following the height of the pandemic are “proving harder to tame.”

“We have pushed back the timing for interest rate cuts until the second quarter of next year, but even this could prove optimistic if core inflation metrics fail to offer convincing evidence of decelerating back to the BoC’s [Bank of Canada] two per cent target,” the report said. The report said it is not currently clear what will happen with the economy, given the present risk of a downturn and data that is yet to indicate a recession is occurring. As a result, central banks are attempting to find the “magic number on the policy rate” that will quell inflation.

The Canadian economy had the strongest growth among all G7 countries during the first quarter of 2023, the report said. A 3.1 per cent gain in real gross domestic product coupled with hotter-than-expected inflation figures in April encouraged the central bank to bring the overnight rate to 4.75 per cent in June, according to TD Economics.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canadian household debt level rises as interest rates bite into cash flowThe increase came as households borrowed $16.5 billion on a seasonally adjusted basis in the first quarter.
Source: ottawasuncom - 🏆 4. / 92 Read more »

Higher interest rates the price of government inflation – Canadian InvestorHigher interest rates the price of government inflation CanadiansInvest
Source: CanadiansInvest - 🏆 53. / 59 Read more »