Bank of America expect an extended series of Federal Reserve and Bank of Canada rate cuts

Analysts at Bank of America see a huge flip to dovish for the US Federal Reserve and the Bank of Canada:

Forecast a 25bp rate cut at the next five Federal Open Market Committee (FOMC) meetings:

• September 17-18, 2024
• November 6-7, 2024
• December 17-18, 2024
• January/February 31-1, 2025
• March 21-22, 2025

And, for the Bank of Canada:

• 25bp cuts at every meeting in the foreseeable future
• policy rate to 3.75% by end-2024
• 3.00% by April 2025
• back of core inflation still trending down
• bar to cut 50bp is high (2Q growth rebound & BoC expect growth will strengthen further in 2H)
• bar to skip a meeting is also high

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