The BOC will maintain the policy rate at its June 4 meeting (instead of a 25 basic points cut). With the neutral policy rate, Boc has been reluctant to relax more unless growth weakens even more. There should be two cuts more than 25 basic points for the rest of 2025, since the softness of growth supports lower rates, reports from Standard Chartered, give bread.
Looking for a more negative production gap
“Now we expect the Bank of Canada (BOC) to maintain the policy rate at 2.75% at its June 4 meeting (instead of a 25 basic points cut). The Central Bank maintained the policy rate without changes in its April meeting, showing a reluctance to support additional cuts of fees until it has more information about the tariffs and its impact on the economy. Probably the downward risks for growth and limited the urgency of an imminent rate cut, in our opinion.
“The softness of the labor market biases the risks towards addition Case of an immediate relief, but that the economic uncertainty continues will probably weigh gradually about growth in the coming months.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
