Canada to Have Interest Rate Cuts in Spring and Return to Growth by Year’s End, Deloitte Predicts

Canada’s economy will return to growth in the second half of 2024 with interest rate cuts expected as early as late spring, Deloitte Canada says. The financial firm’s latest economic outlook report forecasts sluggish growth during the first half of the year due to the impact of higher interest rates but also predicts momentum in the economy and the job market will improve in the second half of 2024. The Bank of Canada held its interest rate steady at five percent last month and has yet to commit to lowering the interest rate in the near future. While inflation remains “uncomfortably high” at 3.1 percent, it’s unlikely the central bank will increase rates further, the report says....