Live news: Bank of Canada to cut rates this spring, Deloitte says
The Canadian economy will return to growth in the second half of 2024, with interest rate cuts as early as this spring, Deloitte Canada says.
The firm’s economic outlook report predicts stagnant growth during the first half of the year as the effects of higher interest rates continue to work their way through the system.
The Bank of Canada held its key rate steady at five per cent in December after a heavy-handed hiking campaign to fight inflation.
Deloitte said inflation is still uncomfortably high at 3.1 per cent as of November, but it’s unlikely the central bank will hike rates further.
However, Deloitte Canada chief economist Dawn Desjardins said we shouldn’t expect interest rates to return to their pre-pandemic lows.
Desjardins said momentum in the economy and the job market is poised to improve in the second half of 2024 as confidence starts to recover.
Desjardins spoke with the Financial Post’s Larysa Harapyn in December about the firm’s economic outlook. Watch the interview and read the story here.
Stocks steadied after a bruising start to the year as investors awaited fresh pointers on the timing of possible interest-rate cuts. Oil continued its surge as conflict in the Middle East added to supply concerns.
United States equity futures climbed and Europe’s Stoxx 600 added 0.4 per cent, supported by oil majors including TotalEnergies SE and BP PLC after crude jumped more than four per cent in two sessions. Bonds fell, with the 10-year Treasury yield up four basis points at 3.95 per cent.
The S&P/TSX composite index closed down 53.56 points at 20,818.58 on Wednesday.
The S&P Global Manufacturing PMI for December will be released this morning. In the United States, expect the latest Challenger layoff report, the
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