BMO Economics released its updated rate forecast and here’s the take away you need to know:
- The new forecast is for a total of 50 basis points (.50%) in rate cuts for 2024. This is a decrease from the previous forecast of 75 basis points (.75%).
- The first expected reduction is projected for the third quarter of 2024 (a reduction of .25%).
- The second expected reduction is projected for the fourth quarter of 2024 (another rate reduction of .25%)
What’s happening south of the border?
Members of the FOMC (Federal Open Market Committee) opted to leave the Fed Funds target rate unchanged at a range of 5.25-5.50%. There is now a raised expectation that the Federal Reserve will deliver a quarter-point rate hike… and this is important to us in Canada because as well know whatever happens in the U.S typically has some kind of impact on the Canadian market and our policies.