High interest rates are still feeding through and we expect both GDP and employment to be flat over the next two quarters. As excess supply builds, a fall in inflation to the 2% target will leave scope for the Bank of Canada to cut interest rates sharply, from the current 5.0% to 3.5% by the end of 2024 and 3.0% in early 2025. We expect looser policy to help drive a recovery in GDP growth to 2.4% in 2025, from 0.4% this year.
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