Expect Another Rate Cut In March Say The Economists

Good news for anyone needing a mortgage in the upcoming months. Canadian economists expect another 1/4% rate cut by the Bank of Canada in March.

Because of the slowdown of the US economy and the impact that has here in Canada most economists agree that in order to keep our economy stimulated the Bank of Canada will be lowering rates.

JP Morgan Chief Canadian Economist Ted Carmichael said he expects the Bank of Canada to lower its key rate by 50 basis points at each of its next two monetary policy-setting dates.

"We believe that by the next meeting, data on the U.S. economy will provide a smoking gun, showing clear signs of a sharp economic slowdown," Beata Caranci, director of economic forecasting at TD Bank, said.

"Given that economic and financial market conditions will probably continue to deteriorate between now and the next policy announcement on March 4, you can't rule out an eventual 50-pointer," Michael Gregory, senior economist at BMO Capital Markets, said.