Economic Policies

ANALYSIS: Why Bank of Canada May Not Cut Rates as Fast as Markets Expect

Global macro strategist notes that skyrocketing population growth necessitates higher interest rates.
ANALYSIS: Why Bank of Canada May Not Cut Rates as Fast as Markets Expect
Bank of Canada governor Tiff Macklem and senior deputy governor Carolyn Rogers hold a press conference at the central bank in Ottawa on Jan. 24, 2024. The Canadian Press/Sean Kilpatrick
Rahul Vaidyanath
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OTTAWA—The Bank of Canada announced a shift in its thinking on Jan. 24 while holding its policy rate at 5 percent. The central bank softened its stance on more rate hikes and gave hints that it’s now beginning to think of when it would be appropriate to start cutting interest rates.
But while many are forecasting multiple rate cuts in 2024 and avoidance of a recession, Richard Dias, global macro strategist at PGM Global in Montreal, told The Epoch Times he would not be planning for rate cuts any time soon due to pent-up inflation in housing and food—and elevated immigration.
Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
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