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2025-09-18 23:57:53
[Bank of America: The Bank of Canada will relatively quickly lower its policy rate to below neutral] Bank of America Securities estimates that the Bank of Canada will relatively quickly lower its policy rate to below neutral and reach 2% by the end of the year. Economist Carlos Capistran said this would include a 25 basis point cut in October and December, respectively, to consolidate the monetary policy easing policy that has remained stable since March. Capistran said the specific timing will depend on how quickly core inflation responds to weak economic activity, but he currently expects inflation to reach 1.9% by the end of both this year and next year, while Bank of America previously expected inflation to reach 2% this year and next year.
