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MNI BRIEF: BOC Rate Seen At Or Near Peak- Ex Governor Dodge

OTTAWA (MNI)

The Bank of Canada's current policy interest rate of 4.75% is at or near the peak for this cycle according to a new forecast co-authored by former Governor David Dodge.

The U.S. Federal reserve is in the same situation and in both nations "rates would come down only gradually in 2024 and 2025," according to a report from Bennett Jones where Dodge became a senior adviser after running the central bank from 2001-2008.

Interest rates are already high enough to slow Canada's economic growth to a 1% annualized pace over the next year according to the report. Inflation will remain stubborn and remain a bit faster than 2% by the end of 2025. (See: MNI INTERVIEW:BOC Hike Is Precursor For More- Laval U's Gordon)

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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