Bank of Canada to be more aggressive with rate cuts, economists say

The Bank of Canada is expected to adopt a more aggressive stance on interest rate cuts as inflation eases, with forecasts suggesting a reduction from 4.5% to 3% by July 2024. Economists predict the key overnight rate will drop to 4.25% at the September 4 meeting, potentially settling around 2.75% by 2026. This shift aims to facilitate a "soft landing" for the economy, with growth projected at 1.7% in 2025. Influences from the US economy and declining bond yields may also ease fiscal pressures on the government.