20 December 2018

Cutting rates at the end of 2019 may help Canada’s economy grow by 1.7% in 2020, Capital Economics says. Meanwhile, a 1.5% growth is expected this year.

As you know, the BoC raised its key lending rate by 0.25% to 1.75% in October. However, the Bank said the national real estate market is stabilizing, and one big bank expressed doubts concerning this issue recently.

Nevertheless, Capital Economics’ forecasts of the BoC changing the course of its monetary policy is opposite to what the majority of experts predict.