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OECD Sees Steady Rates Until Mid-2024, 150BPs of Cuts By End of 2025

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  • "The policy rate should remain high, at 5%, until mid-2024 to ensure price growth returns within the Bank of Canada’s target range of between 1% and 3%," OECD says Wed in Outlook report.
  • Further rate hikes may still be needed to quell inflation but rates should move back to neutral as economy moves to its potential.
  • Policy is restrictive and helping dampen demand and re-anchor inflation expectations, OECD says.
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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