Interest Rates To Be Cut Down Says Economist

If the country’s export continues with its downturn, according to the investment bank, Nomura, Canada will likely start to cut down on their interest rates for this year. In a client’s note, an economist Charles St-Arnaud noted that the expected growth by BOC needs improved results from the exports that are non-energy.

Unfortunately, if there is no expansion, the present 40 percent on the rates of interest cut that is expected will not increase. Although the cut on a rate will be of good use to the businesses and companies that are being put under pressure from the loss of costs of resources in Mexico and Asia and cost-effective workforce, it will raise an accustomed cause of alarm.

St-Arnaud wrote down that the BOC should be on standby and be concerned if it reignites household crediting and the real estate market, while the investment in the industry is not acting out toward the cuts of rates at the moment.