Economy to Grow Moderately, Rates to Fall Below Three Percent Next Year: Deloitte

Deloitte Canada expects economic growth to pick up next year as it forecasts the Bank of Canada to cut its key interest rate below three percent by mid-2025. In the company’s fall economic outlook released Thursday, it forecasts the central bank’s interest rate will fall to 3.75 percent by the end of this year and a neutral rate of 2.75 percent by mid next year. Meanwhile, it expects the economy to grow moderately as softer labour market conditions persist, especially as many homeowners have yet to face higher rates when they refinance their loans. “We do think that we’re going to be in for a decent year next year,” said Dawn Desjardins, chief economist at Deloitte Canada....