CIBC highlights today's Bank of Canada rate decision and what it means for the economy and central bank from here:
- 2024 BOC inflation forecast cut to 2.2% from 2.4% despite higher oil prices in a sign of an easing bias
- The 2.8% annualized growth forecast for Q1 is in line with our forecast and slightly below current tracking, but the 1.5% pace in Q2 is maybe a little optimistic
What CIBC had to say:
We currently forecast a first interest rate cut in June and a total of four 25bp moves before the end of the year. To steal a line from Governor Macklem's press conference today, that outlook still appears to be within the realm of possibility, but is reliant on core inflationary pressures sustaining their current lower rates or easing further.
