Economists say BoC could cut rates again in July if inflation keeps cooling: CP

Bank of Canada Governor Tiff Macklem responds to a question during a news conference following an interest rate announcement, Wednesday, October 25, 2023 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Economists are forecasting inflation slowed further in May, which would be welcome progress for the Bank of Canada after it lowered its key lending rate for the first time in four years this month, CP reported. 

Statistics Canada is due to release its Consumer Price Index on Tuesday and again on July 16. The data could signal the way for another rate cut at the central bank’s next decision on July 24, economists said, according to the CP report. 

BMO and TD predict Canada's annual inflation rate slowed to 2.6 and 2.5 per cent, respectively, down slightly from 2.7 per cent in April, CP said.

The Bank of Canada delivered a quarter-percentage-point rate cut on June 5, bringing its benchmark rate to 4.75 per cent. 

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