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MNI BoC Review, Oct'24: Bigger Cut As Market Eyes Neutral

The BoC ramped up the pace of its easing cycle with a 50bp cut to a 3.75% target rate, with policy still restrictive
Bank of CanadaCentral Bank NewsHomepageBoC - ReviewCanadaCentral Bank ReportsGlobalStoryCentral Bank ReviewNorth AmericaMarketsRegion

MNI (LONDON) - EXECUTIVE SUMMARY

  • The BoC ramped up the pace of its easing cycle with a 50bp cut to a 3.75% target rate, having now cut 125bp since June. Neutral rates are seen in a range of 2.25-3.25%.
  • Market reaction was limited by having been circa 46-47bp of cuts priced beforehand.
  • Further rate cuts are coming, with the size and timing to be determined by the data.
  • Analysts and markets alike currently have a roughly 50/50 call between shifting back to a 25bp pace or following with a second 50bp cut in December.
  • GDP and labour data are likely in the driving seat here, with two reports of each before the Dec 12 BoC decision.

 PLEASE FIND THE FULL REPORT HERE: BOCReviewOct2024.pdf

 

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MNI (LONDON) - EXECUTIVE SUMMARY

  • The BoC ramped up the pace of its easing cycle with a 50bp cut to a 3.75% target rate, having now cut 125bp since June. Neutral rates are seen in a range of 2.25-3.25%.
  • Market reaction was limited by having been circa 46-47bp of cuts priced beforehand.
  • Further rate cuts are coming, with the size and timing to be determined by the data.
  • Analysts and markets alike currently have a roughly 50/50 call between shifting back to a 25bp pace or following with a second 50bp cut in December.
  • GDP and labour data are likely in the driving seat here, with two reports of each before the Dec 12 BoC decision.

 PLEASE FIND THE FULL REPORT HERE: BOCReviewOct2024.pdf