Bank of America expect an extended series of Federal Reserve and Bank of Canada rate cuts

Analysts at Bank of America see a huge flip to dovish for the US Federal Reserve and the Bank of Canada:

Forecast a 25bp rate cut at the next five Federal Open Market Committee (FOMC) meetings:

  • September 17-18, 2024
  • November 6-7, 2024
  • December 17-18, 2024
  • January/February 31-1, 2025
  • March 21-22, 2025

And, for the Bank of Canada:

  • 25bp cuts at every meeting in the foreseeable future
  • policy rate to 3.75% by end-2024
  • 3.00% by April 2025
  • back of core inflation still trending down
  • bar to cut 50bp is high (2Q growth rebound & BoC expect growth will strengthen further in 2H)
  • bar to skip a meeting is also high

This article was written by Eamonn Sheridan at www.forexlive.com. Source