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2025-10-29 23:32:25
[The Bank of Canada has signaled that the threshold for future rate cuts is high] Royce Mendes of Desjardins stated, "The Bank of Canada has signaled that the threshold for future rate cuts is high, not because policymakers believe the Canadian economy will recover quickly, but because monetary policy has limited effectiveness in supporting the economy facing a difficult transition." The economist still believes the risks to the economy and inflation are tilted to the downside, but Desjardins' base case no longer assumes the Bank of Canada will further lower policy rates. Mendes noted that Canadian government bond yields rose after the rate cut announcement, but he said the rate cut appears to be limited by economic uncertainty.
