Canadian Dollar Could Fall if BOC Signals Further Rate Cuts -- Market Talk
Dow Jones
Mar 11, 2025
1354 GMT - Another interest-rate cut by the Bank of Canada on Wednesday is priced in but any signals for further policy easing could weaken the Canadian dollar, Commerzbank's Michael Pfister says in a note. The market expects another 25 basis points rate cut will help cushion any negative economic impact from U.S. tariffs, he says. "However, cutting rates too much could be problematic." Rates might now be in the range of the so-called neutral rate, which neither spurs or slows growth. Meanwhile, tariffs are likely to lift inflation, he says. The U.S. dollar falls 0.2% to 1.4413 Canadian dollars. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
March 11, 2025 09:54 ET (13:54 GMT)
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