Bank of Canada set to cut again in July

Today’s interest rate cut from the Bank of Canada will be the first of many, and the dovish tone of the accompanying communications suggests another rate cut in July is nailed on. As Governor Tiff Macklem shrugged off any potential concerns about exchange rate effects if the Bank diverges from the Federal Reserve, our base case now is that there will be 25 bp cuts at every meeting this year.   

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