Posted 3/26/2024, 3:29:59 PM
Bank of Canada Expected to Cut Rates Faster Than U.S. Fed Due to Slowing Economy and High Debt Levels
- Bank of Canada (BoC) likely to cut interest rates before U.S. Federal Reserve due to slowing economic growth and cooling inflation in Canada
- Canadian economy more sensitive to interest rates than U.S. due to high household debt levels
- BoC may need more aggressive and deeper rate cuts than U.S. Fed over longer time period
- Lower interest rates could provide relief to many Canadian mortgage holders and consumers facing high debt burdens
- Deeper/faster cuts risk weakening Canadian dollar and reigniting inflationary pressures
