On April 13, Canadian Imperial Bank of Commerce analyst Avery Shenfeld believes that the Bank of Canada will keep interest rates unchanged for the rest of this year, neither fulfilling its implicit warning that it may raise interest rates further, nor satisfying the market’s expectations for a rate hike before the end of the year. Expectations of rate cuts.
The Bank of Canada should be patient, it can bring inflation down to target without causing unnecessary pain to the economy, and it doesn’t look likely to ease rates until 2024.
Encouragingly, Shenfeld added, the Bank of Canada sees no need for a full-blown recession to get inflation on track.