Central Banks Expected to Cut Rates in 2024 as Inflation Cools and Growth Slows
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Interest rates are expected to be cut by the Bank of Canada and the Fed starting in the second half of 2024, with the BoC cutting by 150 basis points to 2.75% by end of 2024.
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Inflation is trending down and wage growth is expected to slow, allowing rate cuts.
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Economic growth will be weak in the first half of 2024, with full year growth of just 0.6%. The unemployment rate will rise to about 6.3% by Q2 2024.
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The housing market will start to improve when rates fall, especially detached homes, but condo construction remains high.
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Top risks are geopolitical issues and inflation proving stickier than expected, forcing more rate hikes and recession.