Economists See Canadian Soft Landing Even Without Jumbo Rate Cuts.

INTEREST rates; UNEMPLOYMENT statistics; BANK of Canada; RECESSIONS; INFLATION targeting; BLOOMBERG LP; ECONOMIC statistics

According to economists surveyed by Bloomberg, the Bank of Canada is expected to achieve a soft landing for the country's economy without resorting to large interest rate cuts. The economists predict that the central bank will gradually lower borrowing costs by a quarter percentage point over the next five decisions, bringing the benchmark overnight rate down to 3% by April 2025. Despite signs of weakness in the economy, such as slowed consumption growth and increased unemployment rates, economists believe that Governor Tiff Macklem can maintain a gradual pace of monetary easing to prevent a recession. The survey also suggests confidence in the bank's ability to control inflation, with price gains projected to reach the 2% target by the second quarter of 2025. However, market traders are less optimistic and anticipate a 50 basis-point cut at the next central bank meeting, with the policy rate falling to 2.5% by the end of 2025. [Extracted from the article]

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