The Bank of Canada is widely expected to deliver a third consecutive interest rate cut on Wednesday as inflationary forces continue to cool on both sides of the Canada-United States border.
Markets are also calling for the U.S. Federal Reserve to start its own easing cycle later this month, a move that economists tell Global News will help set its Canadian counterpart up for more rate cuts to come.
Derek Holt, vice-president and head of capital market economics at Scotiabank, tells Global News that he expects both the Bank of Canada and the U.S. Fed to deliver quarter-point rate cuts in September.
The Fed is set to announce its next rate decision on Sept. 18, two weeks after the Bank of Canada.
While the Canadian central bank is already 50 basis points into an easing cycle, its U.S. counterpart is playing catch-up.
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Inflation has continued cooling for Canadians amid mild economic growth for much of 2024, allowing the …