Just months ago, the prospect of an additional Bank of Canada rate hike by the end of 2020 was very much on the table.
In recent weeks, however, whispers that the next rate move may in fact be down have been growing louder.
In December, Capital Economics said they expected a rate cut before the end of 2019—a call that turned some heads. But now, heavyweights like JPMorgan Chase & Co. and CIBC are adding their voices to those forecasting an impending rate cut rather than a rate hike.
JPMorgan Chase has reduced its Canadian growth forecast to 1.5% from 2.25% and expects the BoC to deliver a 25-bps cut at its October rate meeting.