Investment Executive on Nostr: Bank of Canada should go it alone on rates: RBC ========== The Bank of Canada's ...
Bank of Canada should go it alone on rates: RBC
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The Bank of Canada's approach to monetary policy should be driven by domestic economic conditions, not the actions of the U.S. Federal Reserve Board or worries about the value of the Canadian dollar, according to a report from Royal Bank of Canada's (RBC) economists. The report highlights that the Canadian economy has underperformed compared to the U.S., with Canadian GDP down by 2.8% since 2019 on a per-capita basis. The report suggests that the weaker Canadian economy argues for more urgency in cutting interest rates compared to other countries. RBC economists expect the Bank of Canada to deliver its first rate cut in June and to drop rates by 100 basis points this year. The report also notes that the prospect of a weaker Canadian dollar should not discourage the Bank of Canada from cutting rates, as historically shifting exchange rates have not had a big impact on inflation. The report concludes that a softening economy will drive the Bank of Canada to cut rates this year, regardless of actions from the Fed.
#BankOfCanada #MonetaryPolicy #InterestRates #Economy #Inflation #ExchangeRates
https://www.investmentexecutive.com/news/research-and-markets/bank-of-canada-should-go-it-alone-on-rates-rbc/
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The Bank of Canada's approach to monetary policy should be driven by domestic economic conditions, not the actions of the U.S. Federal Reserve Board or worries about the value of the Canadian dollar, according to a report from Royal Bank of Canada's (RBC) economists. The report highlights that the Canadian economy has underperformed compared to the U.S., with Canadian GDP down by 2.8% since 2019 on a per-capita basis. The report suggests that the weaker Canadian economy argues for more urgency in cutting interest rates compared to other countries. RBC economists expect the Bank of Canada to deliver its first rate cut in June and to drop rates by 100 basis points this year. The report also notes that the prospect of a weaker Canadian dollar should not discourage the Bank of Canada from cutting rates, as historically shifting exchange rates have not had a big impact on inflation. The report concludes that a softening economy will drive the Bank of Canada to cut rates this year, regardless of actions from the Fed.
#BankOfCanada #MonetaryPolicy #InterestRates #Economy #Inflation #ExchangeRates
https://www.investmentexecutive.com/news/research-and-markets/bank-of-canada-should-go-it-alone-on-rates-rbc/