The article discusses the potential future direction of interest rates in Canada based on comments from various economists following the recent rate cut by the Bank of Canada. Here’s a summary:
- Desjardins: Royce Mendes, an economist at Desjardins Group, believes that to unlock savings and boost growth, the Bank of Canada will need to continue cutting interest rates until at least mid-next year.
- Alberta Central: Charles St-Arnaud, chief economist at credit union Alberta Central, thinks the Bank of Canada has shifted its focus to supporting economic growth to avoid undershooting its inflation target. He is calling for a series of 25 basis points cuts to bring the lending rate to three percent.
- Other Economists: Some other economists are also predicting further interest rate cuts by the Bank of Canada, potentially bringing rates down to 2.5% or lower by next year.
It’s worth noting that these predictions are based on various assumptions and models, and actual future events may differ from these forecasts. The article provides a snapshot of different viewpoints among experts in the field, rather than making definitive predictions about the future course of interest rates in Canada.
