Canada's Central Bank is expected to cut interest rates by 25BP on Wednesday, with two more cuts expected to follow.

The July 22nd data from Jinshi showed that a large number of economists expect that the Canadian Central Bank will cut the overnight interest rate by 25 basis points to 4.50% on Wednesday, with the expected inflation rate continuing to decline. With the slowing economy and rising unemployment rate, it is expected that the Central Bank will cut interest rates twice in 2024, but only a very small number of economists predict a year-end policy interest rate of 4.00%, with the risk leaning towards less rather than more aggressive easing. Although forecasters have been predicting that the Canadian Central Bank will cut interest rates at least three times in 2024 since the beginning of this year, the possibility of a fourth rate cut is now extremely uncertain, partly because the Fed has not yet begun to cut rates. It is expected that the Canadian Central Bank will pause its easing cycle in September and then cut interest rates again in October and December.