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2025-09-17 23:24:26
[Oxford Economics: The expected cut in the Bank of Canada's policy interest rate does not mean the start of a new cycle of rate cuts] Tony Stilo and Michael Davenport of the Oxford Economics Institute believe that the expected cut in the Bank of Canada's policy interest rate does not mean the start of a new cycle of rate cuts, which will lead to a sharp drop in interest rates to the stimulating range. They expect that the Bank of Canada will cut interest rates by another 25 basis points in October and maintain interest rates at 2.25% until 2026. Economists say that the Bank of Canada still faces a dilemma because it is weighing the upside risks to inflation and the downside risks to economic growth from the trade war. "In addition, major fiscal stimulus measures are likely to be listed in the federal budget this fall, which will play a major role in supporting the economy in the short term," they said.
