Canadian Chamber's Chief Economist Stephen Tapp
The Bank of Canada has cut its policy rate for the second time this year, with it sitting now at 4.5%. It was a move that was widely expected. But what does this mean in the larger picture? Stephen Tapp, Chief Economist for the Canadian Chamber, summarizes the finer points.
- Global growth unchanged, but U.S. weaker.
- Canada’s economy in excess supply.
- More confidence in inflation returning to target.
"Looking ahead, we expect at least two — and possibly three — more rate cuts this year. Markets are currently pricing in a 65% chance of another cut at the Bank’s next rate announcement on September 4. In the U.S., markets expect the Federal Reserve to deliver its first rate cut on September 18."
