Futures traders and other market participants expect that the Bank of Canada will start cutting interest rates in April 2024, according to a new poll released by the central bank.
The latest survey found that a majority of 27 financial experts polled anticipate that interest rates in Canada will fall to 4% by the end of next year, up from an expectation of 3.50% in the previous survey conducted this July.
The Bank of Canada’s trendsetting overnight interest rate currently sits at 5%, a 22-year high. The central bank has raised rates 10 times since March 2022 as it tries to lower inflation to its 2% annualized target.
The survey was conducted from Sept. 20 to 28 this year before economic data showed that Canada's inflation rate fell to 3.8% in the month of September.
The Bank of Canada’s latest survey found that the consensus view is for inflation in Canada to decline to 2.2% by the end of 2024 and for the economy to grow 1.2% next year.
The central bank itself has forecast that Canada’s economic growth will slow throughout 2024 before picking up in 2025.
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