The April 2024 edition of Financial Markets Monthly from RBC Economics includes a forward-looking analysis of Canadian, US and international financial market trends.
Highlights
"We expect a growing gap between policy rates in Canada and the US."
- A resilient US economy and signs of reaccelerated inflation will likely limit the Fed to a single 25 basis point cut in December
- The BoC looks on track to cut rates in June
- The Canada-US monetary policy gap will increase as the BoC cuts deeper than the Fed against a widening macroeconomic growth and labour market gap
- Early signs of a pickup in the Euro area and UK economies are likely insufficient to prevent cuts from the ECB and BOE this year—as long as inflation continues to slow
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