Posted 11/6/2023, 4:16:00 PM
Bank of Canada Expected to Delay Rate Cuts to April 2024 as Inflation Cools
- Market participants expect Bank of Canada to start cutting key policy rate from 5% in April 2024, a month later than previous forecast
- Median expectation for rates to drop to 4% in Q4 2024, up from 3.5% in previous survey
- Survey conducted before data showing inflation slowed to 3.8% in September
- Median forecast sees inflation dropping to 2.2% by end-2024
- GDP growth forecast to be 1.2% in 2024, unchanged from previous survey
- BoC has raised rates 10 times between March 2022 and July 2023 to cool inflation
- BoC expects muted growth until end of 2024, then pickup in 2025