Economists Predict Another Interest Rate Cut as Growth Forecast Falters

Economists criticize the Bank of Canada's optimistic growth forecast, suggesting a significant rate cut is needed to boost the economy. They expected a revision of GDP forecasts amid weak data, but the bank surprised by maintaining its 2024 outlook, leading analysts to foresee a December rate cut.

Economists are questioning the Bank of Canada's optimistic economic growth forecast, suggesting that a substantial interest rate cut might be necessary to stimulate growth.

The bank was anticipated to revise its annual GDP forecast in response to sluggish economic indicators but maintained its 2024 outlook, surprising many analysts.

Experts predict a 50 basis-point rate cut in December, as current conditions suggest growth will remain below expectations.

(With inputs from agencies.)