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.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。