OTTAWA — Forecasters expect this week's inflation report to show Canada's inflation rate fell last month, but financial markets are still unsure whether a June interest rate cut is in the cards for the Bank of Canada.
But Porter said the central bank may need to see an even lower inflation print to be convinced to cut interest rates next month."I think it will probably take something even a little bit milder than what we're calling for to convince to cut in June," Porter said in an interview. The fact that the U.S. Federal Reserve may take longer to begin lowering its policy rate is also tempering rate cut expectations in Canada.
Governor Tiff Macklem has acknowledged the central bank is inching closer to an interest rate cut. But he said the central bank needs to see the downward momentum sustained for longer.“I realize that what most Canadians want to know is when we will lower our policy interest rate. What dowe need to see to be convinced it’s time to cut?” Macklem said at the April rate decision.
"Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target," the summary said. "Others placed more emphasis on the progress made in bringing inflation down." "I think that will tip the scales in favour of a June Bank of Canada rate cut to begin the cutting cycle."The Associated Press caught a glimpse of the event on Friday, which saw Donald and Melania Trump sitting front row in the audienceXThe Biden campaign gleefully turned one of Donald Trump’s favorite digs against him on Saturday, branding the 78-year-old candidate as woefully geriatric in response to his embarrassing stumble at a Minnesota rally on Friday.
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