Reported 6 months ago
A majority of economists predict that the Bank of Canada will lower rates, leading to a modest rally in government bonds. Survey results show expectations of a 25-basis-point rate cut this week, with uncertainty on future easing. Economists believe bonds will rally as monetary policy becomes less restrictive, potentially leading to lower mortgage rates and increased housing activity. The survey also indicates support for Governor Tiff Macklem to start lowering rates, with concerns about a potential spike in home prices and inflation outlook.
Source: YAHOO