The Bank of Canada does a 25bps cut to 4.25%, as expected.
Glad to see it moving in the right direction.
Since the neutral rate (so the rate considered to not be slowing the economy down) is estimated between 2.25% to 3.25% then if they cut 25 basis points each time we will reach just neutral as early as March 2025 and as late as September 2025 (also keeping in mind the lag effect of rate changes.) We're going to have to hope that the Canadian economy naturally strengthens over the next couple of years so that the slowing effects of the higher rates doesn't send us into recession. $Royal Bank of Canada (RY.CA)$ $The Toronto-Dominion Bank (TD.CA)$ $Bank of Nova Scotia (BNS.CA)$
Since the neutral rate (so the rate considered to not be slowing the economy down) is estimated between 2.25% to 3.25% then if they cut 25 basis points each time we will reach just neutral as early as March 2025 and as late as September 2025 (also keeping in mind the lag effect of rate changes.) We're going to have to hope that the Canadian economy naturally strengthens over the next couple of years so that the slowing effects of the higher rates doesn't send us into recession. $Royal Bank of Canada (RY.CA)$ $The Toronto-Dominion Bank (TD.CA)$ $Bank of Nova Scotia (BNS.CA)$
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