In a recent, insightful interview with BNN Bloomberg, Royce Mendes, the esteemed managing director and head of macro strategy at Desjardins, shared his expert analysis on the economic trajectory of Canada. With a sharp focus on the future financial climate, Mendes presents a compelling case for the Bank of Canada's (BoC) likely move to cut interest rates ahead of the U.S. Federal Reserve.
According to Mendes, certain key economic indicators need to align for this to happen: an unemployment rate that breaches the 6% mark coupled with a headline inflation rate that dips below 3%. Looking ahead to 2025, Mendes forecasts a challenging period for Canadians, particularly with a wave of mortgage renewals on the horizon. This pivotal discussion underscores the necessity for proactive rate cuts by the BoC to mitigate the impending "real pain" for Canadian households. BoC Needs to Cut Rates to 3.5% in 2024.
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