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2025-10-29 23:33:17
[Capital Economics: Bank of Canada Will Be Forced to Cut Rates Another 0.5 Percent Next Year] Stephen Brown of Capital Economics stated that after another 25 percentage point cut, bringing the policy rate down to 2.25%, the Bank of Canada undoubtedly indicates that it is likely to maintain the current rate. While the economist still believes the Bank of Canada will eventually be forced to cut rates again by 0.5 percentage points next year, he pointed out that the Bank of Canada stated that the current policy rate level is roughly appropriate, keeping inflation around 2% while helping the economy through the structural adjustment period. Brown stated that he has consistently believed that once the policy rate reaches the lower limit of the central bank's previously projected neutral range (i.e., the current level), the threshold for further rate cuts will be higher.
