The Bank of Canada’s governing council has a range of opinions on the timing of interest rate cuts, but agrees on a measured approach to monetary policy easing. While inflation is cooling, elevated housing costs remain a concern. The central bank emphasizes the need for patience and gradualism in reducing borrowing costs, indicating that a first rate cut could come as early as June.
Canadian retail sales declined by 0.1% in February and remained unchanged in March, indicating a sluggish economic recovery amid rising interest rates. The disappointing retail data has increased market expectations for a potential interest rate cut by the Bank of Canada in June, though the central bank has more economic data to consider before making a decision.
