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2025-10-29 20:18:23
[Institution: Bank of Canada to Cut Rates by 25 Basis Points; Macklem Expected to Offer No Specific Guidance] Investinglive analyst Giuseppe Dellamotta expects the Bank of Canada to cut interest rates by 25 basis points to 2.25%, the lower end of its estimated neutral rate range (2.25%-3.25%). The market still believes the Bank of Canada is likely to end this rate-cutting cycle at 2.00% sometime in 2026. At the press conference, Bank of Canada Governor Macklem is not expected to provide any specific forward guidance. Recent expectations of a rate cut have solidified, mainly due to Macklem's previous dovish comments and the renewed tensions between the US and Canada over tariffs. While we know the US and Canada will eventually reconcile, this risk should, for now, give the Bank of Canada reason to be dovish. If the Bank of Canada keeps rates unchanged, this would be seen as a hawkish surprise, and the Canadian dollar should strengthen across the board. However, in the current context, surprising the market may not be a good thing for the bank.
