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CANADA: CIBC Also Now Call For 50bp BoC Cut Next Week

CANADA
Bank of CanadaGlobalCentral Bank NewsCanadaBulletMarketsFixed Income BulletsForeign Exchange BulletsRegionNorth America

CIBC also shift to calling for a 50bp cut from the BoC next week. BMO have done similar after today's CPI data, joining previous calls from Desjardins and RBC. 

  • "Headline inflation may perk up a bit in the months ahead due to higher gasoline prices so far in October, and may even rise back above 2% briefly in early 2025. However, core measures of inflation should continue to decelerate given evidence of slack in the economy, and we think that there's plenty of room for the Bank of Canada to cut interest rates and accelerate growth to prevent an undershoot of the 2% inflation target next year. We now forecast a 50bp cut at the October meeting, and continue to predict an overnight rate of 2.25% by mid-2025."

 

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CIBC also shift to calling for a 50bp cut from the BoC next week. BMO have done similar after today's CPI data, joining previous calls from Desjardins and RBC. 

  • "Headline inflation may perk up a bit in the months ahead due to higher gasoline prices so far in October, and may even rise back above 2% briefly in early 2025. However, core measures of inflation should continue to decelerate given evidence of slack in the economy, and we think that there's plenty of room for the Bank of Canada to cut interest rates and accelerate growth to prevent an undershoot of the 2% inflation target next year. We now forecast a 50bp cut at the October meeting, and continue to predict an overnight rate of 2.25% by mid-2025."