Fitch expects the first Bank of Canada rate cut in April 2024

<p>I posted earlier on the agency's outlook for the US economy and the Federal Reserve:</p><ul><li><a href="https://www.forexlive.com/centralbank/fitch-still-expecting-us-recession-in-h1-2024-also-expecting-1-more-fed-rate-hike-20230913/" target="_blank" rel="follow" data-article-link="true">Fitch still expecting US recession, in H1 2024. Also expecting 1 more Fed rate hike.</a></li></ul><p>Also from Fitch were comments on Canada:</p><ul><li>reduced its GDP forecasts for this year and next, to 1.1% and 0.7%, respectively</li><li>said Q2 2023 GDP was weaker than expected, partly due to temporary factors such as wildfires and strikes</li><li>

“Underlying growth momentum is weak as past tightening takes its toll on domestic demand”</li></ul><p>And its BoC outlook, saying they don't the Bank will need to raise rates any further from the current 5%:</p><ul><li>“Nevertheless, with inflation set to remain above target through 2024, we think the Bank will not rush to cut rates, with the first cut coming only in April next year.”</li></ul><p>Bank of Canada interest rate indications </p>

This article was written by Eamonn Sheridan at www.forexlive.com.