Skip to main content

Rate cuts are coming, albeit a little later

The acceleration in the CPI-trim and CPI-median measures of core inflation in December suggests the Bank of Canada will maintain a hawkish tone next week, but those measures are arguably overstating inflation pressures. With the economy looking weak, we continue to think that the first rate cut is coming sooner rather than later, albeit in April rather than March as we previously forecast.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access