Bank of America: It is expected that the Bank of Canada will cut interest rates at every remaining meeting this year

The August 28th data from Jinshi shows that due to the ongoing weakness in the Canadian economy, the unemployment rate has risen, while the inflation rate has fallen. The Bank of America believes that there is little possibility that the Central Bank of Canada will cut interest rates by 50 basis points next week, but it is expected that the interest rate policy will be reduced by 25 basis points to 4.25%. As the Central Bank will continue to rely on data, Bank of America expects that at the remaining policy meetings in 2024, there will be similar interest rate cuts each time, and the interest rate will fall to 3.75% by the end of the year, and then to 3% by the end of 2025.