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MNI INTERVIEW: BOC To Keep Cutting As Far As 3%- Ex Staffer

(MNI) OTTAWA
MNI speaks to former Bank of Canada economist Charles St-Arnaud.

MNI (OTTAWA) - Canada's central bank could keep cutting interest rates at each of the next six meetings after doing so twice in the last two months, bringing monetary policy closer to neutral and giving consumers optimism as the labor market stalls, former staff economist Charles St-Arnaud told MNI. 

Those moves would bring today's 4.5% benchmark rate to a range of between 3.5% and 3%, down from the peak of 5% and close to the Bank's estimate of a neutral rate of 2.75%. The Bank's policy rate hasn't been that low since July 2022 as rates surged to check inflation headed to 8%. 

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MNI (OTTAWA) - Canada's central bank could keep cutting interest rates at each of the next six meetings after doing so twice in the last two months, bringing monetary policy closer to neutral and giving consumers optimism as the labor market stalls, former staff economist Charles St-Arnaud told MNI. 

Those moves would bring today's 4.5% benchmark rate to a range of between 3.5% and 3%, down from the peak of 5% and close to the Bank's estimate of a neutral rate of 2.75%. The Bank's policy rate hasn't been that low since July 2022 as rates surged to check inflation headed to 8%. 

Keep reading...Show less