Capital Economics: Bank of Canada may cut interest rates five times in 2024

Capital Economics said inflation data and Bank of Canada meeting minutes released this week supported the agency's view that there could be as many as five interest rate cuts in 2024, according to a report by King Ten. Inflation slowed for a second straight month, with some core inflation measures falling to their lowest levels in years. The Bank of Canada meeting minutes indicated that the central bank was "at least beginning to recognize that it should ignore housing inflation to some extent." Retail sales data released on Friday were lackluster and the labor market is expected to cool further. Capital Economics said the case for a rate cut will become increasingly convincing, with the data providing a reason for the Bank of Canada to cut interest rates next month.