2033 GMT - The Bank of Canada is entering a period of great uncertainty and will likely need to cut interest rates cautiously, says Jason Daw, head of North America Rates Strategy at RBC Dominion Securities. Daw had expected the BOC to cut rates by 25 bps at each of its next four meetings, ending with a terminal cash rate of 2%. But that call did not account for tariffs. If the tariffs last longer than 3-6 months, the chance of the overnight rate ending 2025 above 2% is small, he says. More likely it is below. The fiscal response in Canada to the economic shock will be critical to how the BOC reacts. The risks are hard to quantify and add to the case for a cautiously cutting BoC, Daw adds. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
February 02, 2025 15:33 ET (20:33 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。