Thursday, July 25, 2024
HomeStock MarketPossible BoC Rate Cut Expected on Wednesday

Possible BoC Rate Cut Expected on Wednesday

Thaker, a research analyst at Global X, was the featured guest on a morning show discussing the potential interest rate cut by the banks. Thaker shared his insights on the probability of a rate cut and the impact it could have on the Canadian economy.

Thaker mentioned that there is an 83% probability of a rate cut on Wednesday, but he believes that the banks may wait until the next meeting in July to make a decision. He pointed out that inflation has been fluctuating and waiting for more data points before making a cut could be a wise decision.

When asked about the consequences for the Canadian economy, Thaker mentioned that while a rate cut may provide some relief initially, it may not have a significant impact in the long term. He also discussed the potential effects on the Canadian dollar, stating that if the Bank of Canada cuts rates while the US Federal Reserve holds back, the Canadian dollar could weaken.

Thaker also shared his views on the likelihood of a Fed cut in the US, stating that he doesn’t see a cut happening until November or December, possibly after the election. He mentioned that the Federal Reserve may try to avoid making cuts around the election to avoid any political implications.

Overall, Thaker’s insights provided a comprehensive look at the potential rate cut and its implications for the Canadian economy and the exchange rate. His analysis shed light on the complex dynamics at play and the factors that could influence future monetary policy decisions.



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