Analysts at Bank of America see a huge flip to dovish for the US Federal Reserve and the Bank of Canada:
Forecast a 25bp rate cut at the next five Federal Open Market Committee (FOMC) meetings:
- September 17-18, 2024
- November 6-7, 2024
- December 17-18, 2024
- January/February 31-1, 2025
- March 21-22, 2025
And, for the Bank of Canada:
- 25bp cuts at every meeting in the foreseeable future
- policy rate to 3.75% by end-2024
- 3.00% by April 2025
- back of core inflation still trending down
- bar to cut 50bp is high (2Q growth rebound & BoC expect growth will strengthen further in 2H)
- bar to skip a meeting is also high
This article was written by Eamonn Sheridan at www.forexlive.com.
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