From Morningstar: 2024-04-04 09:46:59

The Bank of Canada is set to announce its decision on interest rates next Wednesday. Senior deputy governor Carolyn Rogers hints at a possible rate cut to further combat inflation. The focus now is on improving Canadian labor productivity for long-term economic stability.

Recent data shows Canadian inflation nearing 2%, with a decrease in prices for telecom services. Food prices are also showing deflationary trends. The U.S. is projected to cut interest rates in June 2024, potentially earlier than Canada. Market indicators suggest a steady decline in Canadian interest rates in the coming months.

Investors should stay focused on long-term financial goals amid the uncertain interest-rate landscape. Morningstar Canada advises reviewing and adjusting portfolios to align with individual risk tolerance and financial plans. Canadian interest-rate cuts may be delayed but are expected to follow a downward trend in line with market expectations.



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