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Our reading of the Bank of Canada’s (BoC) latest communications is that the governing council is preparing a breath of fresh air for the suffocating Canadian economy.

The year began with the good news that Canadian inflation slowed abruptly in January. This month, we look at why the BoC will most likely start cutting rates this summer.

Highlights:

• Canadian inflation slowed in January, providing positive news for the start of 2024.
• The Bank of Canada has opened the door to rate cuts despite sticky inflation, as it is looking beyond the shelter and demographic components.
• We turned more optimistic on equities and slightly cautious on sovereign bonds. Our negative bias towards low-quality corporate bonds remains in place.

Your Monthly Macro & Strategy is also on the iA Global Asset Management website.

 

Your experts   Sébastien Mc Mahon, MA, PRM, CFA Chief Strategist, Senior Economist and Vice-President, Asset Allocation & Portfolio Manager Follow Sébastien Mc Mahon on          Alex Bellefleur, MA, CFA Senior Vice-President, Head of Research, Asset Allocation     Tuyen Tran, M.Sc., CFA Senior Analyst, Asset Allocation and Economics

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