Interest rates on path to head south
The BoC, Fed, European Central Bank and Bank of England all held interest rates steady over the quarter. These central banks believed their interest rates were at levels that were helping to bring inflationary pressures down.
At the Fed’s last meeting, officials predicted the possibility of three interest rate cuts this year.
The BoC is searching for more proof inflation will sustainably reach its 2% target. However, it believes interest rate cuts are possible in 2024. Lower interest rates and inflation could ease financial pressures on Canadian households. Expectations are helping to push Canadian equity markets higher. Markets are expecting interest rates to fall to approximately 4.25% by the end of 2024, per Bloomberg estimates.Â
Central banks are carefully trying to loosen financial conditions without reversing their progress on inflation.
Conversely, the Bank of Japan raised its…
